2013 (4) TMI 865 - AT - Income Tax

Summary

Issues involved: Appeal by Revenue against CIT(A) order for assessment year 2008-2009.

Summary:
The appeal by the Revenue was against the order of the CIT(A)-I, Surat dated 24.7.2012 for the assessment year 2008-2009. During the hearing, no one appeared on behalf of the assessee-respondent, leading to the appeal being disposed of ex parte. The main ground of the Revenue was the restriction of addition of unexplained deposits in the bank account. The learned DR argued that the AO was not given a reasonable opportunity to provide comments, citing a lack of natural justice. However, the Tribunal found that the CIT(A) had indeed given the AO an opportunity to submit a remand report, which was duly considered along with the assessee's comments. The CIT(A) reasoned that the entire deposit amount added by the AO was unjustified, and only the peak of cash deposits along with additional undisclosed income was sustained. The Tribunal upheld the CIT(A)'s order, emphasizing that the entire deposit amount could not be taxed as income and confirming the addition based on the peak cash credit. The Revenue's grounds were dismissed as lacking merit, and the appeal was ultimately dismissed.

In conclusion, the Tribunal upheld the CIT(A)'s order, dismissing the appeal of the Revenue for the assessment year 2008-2009.