2012 (2) TMI 559 - AT - Income Tax

Summary

Issues involved: Appeal against order of Commissioner of Income-tax (Appeals) for assessment year 2005-06 regarding unexplained investment of Rs. 200.82 lakhs with VSNL.

Summary:
The appeal was filed by the assessee against the order of the Commissioner of Income-tax (Appeals) for the assessment year 2005-06. The Assessing Officer had issued notices u/s.148 and u/s.142(1) of the Income Tax Act, 1961 as the assessee had made an investment of Rs. 200.82 lakhs with VSNL. The Assessing Officer added this amount as unexplained investment and completed the assessment u/s.144/147 of the Act. The Commissioner of Income-tax (Appeals) decided the appeal ex-parte, upholding the action of the Assessing Officer due to lack of explanation or evidence from the assessee. The appeal was based on the principles of natural justice, requesting the matter to be restored back to the file of the Assessing Officer for a fresh decision. The Appellate Tribunal considered the submissions and decided to give the assessee another opportunity to explain the deposit of Rs. 2 crores with BSNL, thus allowing the appeal for statistical purposes. The order was pronounced on 02-02-2012.