2014 (4) TMI 1116 - AT - Income Tax

Addition made on the basis of DDIT s report - Held that - Similar additions on similar facts, the Tribunal has set aside the issue back to the file of AO for de-novo assessment in the case of assessee s husband. We also find that in another assessee of the same group Tribunal has taken a similar view. Facts and issue being identical, we see no reason to take a contrary view than the view taken by the Coordinate Benches. Hence, we set aside the order of ld. CIT(A) and restore the same to the file of the AO to re-do the assessment afresh after hearing the assessee and considering all the material evidences as may be produced before him by the assessee. Needless to mention here, the AO will give a reasonable and sufficient opportunity of being heard to the assessee.

Summary

Issues:
Appeal against the order of ld. CIT(A)-37, Mumbai dated 21.7.2010 pertaining to assessment year 2003-04. The assessee contested the addition made by AO amounting to Rs. 4,94,010 based on assessment u/s 143(3) r.w. section 153A of the Income Tax Act, 1961. The Tribunal considered the appeal and set aside the order of ld. CIT(A) to re-do the assessment afresh after hearing the assessee and considering all material evidences.

Analysis:

1. Addition made by AO: The primary issue in this case was the addition of Rs. 4,94,010 made by the Assessing Officer (AO) based on assessment u/s 143(3) r.w. section 153A of the Income Tax Act, 1961. The Commissioner of Income Tax set aside the initial assessment, and subsequent to the directions, the AO computed the assessed income at Rs. 10,37,510. The additions were made based on a report from DDIT. The assessee appealed to the ld. CIT(A) but was unsuccessful, leading to the current appeal before the Tribunal.

2. Judicial Precedents: The assessee's counsel referred to a decision by a Co-ordinate Bench in a similar case involving Abdul Hasan Khan. The Tribunal had set aside the issue back to the file of the AO for re-assessment after considering relevant material and the assessee's contentions. The Tribunal noted that in cases involving similar facts and additions based on seized material, it had consistently taken the stance of remanding the issue for fresh assessment. The Tribunal cited instances involving the assessee's husband and another individual from the same group where similar views were adopted.

3. Tribunal's Decision: After careful consideration of the lower authorities' orders and the precedents cited, the Tribunal found merit in the assessee's contention. The Tribunal observed that on similar facts, it had consistently set aside issues for de novo assessment in related cases. Given the identical nature of the facts and issues, the Tribunal decided to set aside the order of ld. CIT(A) and remand the matter to the AO for fresh assessment. The AO was directed to provide a reasonable and sufficient opportunity for the assessee to present all relevant material.

4. Outcome: The Tribunal allowed the appeal filed by the assessee for statistical purposes, indicating that the matter was remanded back to the AO for re-assessment. The decision was pronounced in the open court on 23rd April 2014, signifying the conclusion of the Tribunal's judgment.

In conclusion, the Tribunal's decision revolved around setting aside the order of ld. CIT(A) and remanding the matter to the AO for fresh assessment, following a consistent approach taken in similar cases with comparable facts and additions based on seized material.