2015 (10) TMI 2118 - AT - Income Tax

Addition on account of the share investment - It is the contention of the assessee is that if an opportunity is granted, the assessee would be able to satisfy the AO with regard to the source of the money - Held that - After considering the totality of the facts and material placed before us, we are of the considered view that the assessee should be granted opportunity to prove the source of funds utilized for the purpose of making investments into the share transactions. To meet the ends of justice, we restore this issue back to the file of AO decision afresh. - Decided in favour of assessee for statistical purposes.

Summary

Issues:
Appeals against orders of Commissioner of Income Tax (Appeals) for AY 2006-07 regarding addition on account of share investments.

Analysis:
1. Common Issues in Appeals: The appeals by two different assessees were against orders of the Commissioner of Income Tax (Appeals) dated 10/02/2015 for AY 2006-07. The Appellate Tribunal heard both appeals together due to common issues and convenience.

2. Assessee's Appeal - Shri Abhay Ashwinkumar Jain: The assessee contested an addition of Rs. 35,10,838 made by the Assessing Officer (AO) on share investments. The Tribunal found that the assessee was not given sufficient opportunity to present their case. The Tribunal directed the AO to grant the assessee an opportunity to prove the source of funds used for investments and complete the assessment within three months.

3. Assessee's Appeal - Smt. Lalitaben A. Jain: Similar to the previous appeal, the Tribunal set aside the order of the authorities and directed a fresh assessment by the AO for de novo assessment due to identical facts.

4. Overall Decision: Both appeals were allowed for statistical purposes, granting the assessees the opportunity to demonstrate the sources of funds used for share investments. The Tribunal emphasized the need for a fair opportunity for the assessees to present their case and directed the AO to conduct assessments afresh within a specified timeframe.

In conclusion, the Appellate Tribunal ITAT Ahmedabad allowed the appeals of the assessees for AY 2006-07, directing the Assessing Officer to re-examine the source of funds for share investments, emphasizing fair opportunities for the assessees to present their case.