2015 (10) TMI 1432 - AT - Income Tax

Addition in the course of the assessment on the basis of the 131 statement recorded - Held that - Assessee has specifically given an undertaking that he would appear before the AO and give all the details and explanations called for by the AO, as also taking into consideration the fact that the Assessee is handicapped insofar as the books of accounts and the connected documents are seized by the Revenue Department, in the interest of justice all the issues in this appeal are restored to the file of the AO for re-adjudication after granting the Assessee an adequate opportunity to substantiate its claims. - Decided partly in favour of assessee for statistical purposes

Summary

Issues: Appeal against order of ld. CIT(A) for A.Y 2009-10, Addition made in assessment, Request for opportunity to explain, Books of accounts seized, Restoration of issues for re-adjudication.

The judgment involves an appeal by the Assessee against the order of ld. CIT(A) for A.Y 2009-10. The Assessee contended that various additions were made during the assessment based on a statement recorded from him, expressing inability to produce all evidence and provide proper explanations. It was highlighted that the books of accounts and vouchers of the Assessee HUF were seized by the Department under section 131(3) and were still in their possession. The Assessee sought another opportunity to present detailed explanations before the Assessing Officer (AO), assuring personal appearance for the same.

Upon reviewing the submissions, the ld. DR did not raise significant objections. The Tribunal considered the Assessee's undertaking to appear before the AO and provide necessary details and explanations, acknowledging the challenge posed by the seizure of accounting documents by the Revenue Department. In the interest of justice, all issues in the appeal were remanded to the AO for re-adjudication, with a directive to grant the Assessee a sufficient opportunity to support its contentions adequately.

Consequently, the appeal of the Assessee was partially allowed for statistical purposes, emphasizing the restoration of the issues to the AO for a fresh examination. The order was pronounced openly on 10/06/2015, reflecting the Tribunal's decision to provide the Assessee with a fair chance to substantiate its claims in light of the circumstances surrounding the seized documents and the need for a comprehensive review by the AO.