Case Law Details
ACIT Vs Pannalal Bhansali (ITAT Kolkata)
ITAT Kolkata remanded the matter back to CIT(A) as relief was granted to the assessee on the basis of various submissions which were for the first time furnished before CIT(A) and CIT(A) prior to granting relief didn’t conduct any enquiry on the same.
Facts- Assessee is a proprietor of H.P. Institute of Insurance, engaged in the business of imparting vocational training. Case of the assessee was selected for limited scrutiny. Issue relates to unsubstantiated increase in capital of the assessee, wherein, AO noted the sharp rise amounting to Rs.23,26,96,302/- out of which the assessee has shown an amount of Rs.13,42,97,642/- as capital brought in. AO noted that the assessee did not consist of any conclusive proof as regards the time of acquisition of various items of transfer entries claimed to be introduced as capital from individual Balance Sheet into proprietorship Balance Sheet and the source of funds used for the same. AO held that since the assessee has not been able to explain the credit in his books of accounts as regards this increase in capital brought in, added it to the total income as it remained unsubstantiated.
Conclusion- Held that there are discrepancies and contradictions in the submission made by the assessee which, more importantly, has been for the first time furnished before the CIT(A). Findings arrived at by CIT(A) on these submissions made by the assessee, in no way demonstrate, conduct of any enquiry either by himself or through the AO while disposing of the appeal, granting relief to the assessee.
We find it proper to set aside the impugned order of CIT(A) on this issue and remit the matter back to his file for de novo adjudication after taking into account the observations and by conducting necessary enquiries either himself or by the AO.
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