Rahul Madhav Goswami Vs DCIT (ITAT Mumbai)
Case Summary:
The case stems from an assessment order passed by the Assessing Officer for the AY 2022-23, wherein the assessee’s return of income was selected for scrutiny resulting in various additions made by the AO. While passing the assessment order, the Assessing Officer also recorded findings treating purchases amounting to Rs. 89.44 crore as unexplained expenditure under Section 69C and cash credits of Rs. 15.01 lakh as unexplained under Section 68 of the Income Tax Act, 1961. However, the same was not added to the computation of taxable income, resulting in apparent inconsistencies in the assessment order. Aggrieved by the assessment order, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). However, the CIT(A), without properly appreciating the submissions and documentary evidences of the assessee, dismissed the appeal without pointing the defects in the said submission.
The assessee, being aggrieved, preferred an appeal before the Income Tax Appellate Tribunal, Mumbai Bench. Advocate Sachin P. Kumar, appearing on behalf of the assessee, effectively argued that the Order of CIT(A) u/s 250 was a non-speaking and unreasonable order since it failed to provide justification for dismissing the appeal. It was further argued that such an order violated the principles of natural justice and thereby, prayed that the impugned order be set aside and the matter be remanded to the CIT(A) for fresh adjudication on merits.
