2018 (6) TMI 1570 - AT - Income Tax

Addition u/s 68 - summons was sent to the Directors of the assessee company as well as Directors of the investing companies but none of them appeared - HELD THAT - As relying on M/S. SRIRAM TIE UP PVT. LTD. VERSUS ITO, WD 9 (4). KOLKATA 2018 (3) TMI 1403 - ITAT KOLKATA it fair and proper and in the interest of justice to set aside the orders of the authorities below on the issue in dispute and restore the matter to the file of the A.O. to decide the same afresh after giving the assessee proper and sufficient opportunity of being heard and after taking into consideration the entire evidence already available on record as well as other documentary evidence which the assessee may choose to file in support of its case on the issue.

Summary

Issues Involved:
Appeal against order of CIT(A) u/s 143(3) for AY 2012-13 - Addition u/s 68 of the Act - Lack of opportunity for assessee in assessment - Guidelines for conducting deep investigation by CIT - Upholding CIT's order u/s 263 in similar cases - Lack of fair opportunity for assessee - Setting aside orders for fresh adjudication.

Analysis:

1. Appeal against CIT(A) Order: The appeal by the revenue was directed against the order of the Commissioner of Income Tax (Appeals) for the assessment year 2012-13, where the assessing officer had made an addition u/s 68 of the Income Tax Act. The first appellate authority granted relief and deleted the addition, leading to the revenue's appeal before the ITAT Kolkata.

2. Lack of Opportunity for Assessee: The assessee argued that no summons u/s 131 were received, and the assessing officer did not conduct an independent inquiry to disprove the claim. The ITAT noted the lack of fair opportunity for the assessee to present evidence before the AO, leading to the matter being remanded back for fresh adjudication.

3. Guidelines for Deep Investigation: The CIT had given guidelines for conducting deep investigations to find the source of source, especially in cases of converting black money into white money. The ITAT upheld the CIT's order u/s 263 in similar cases, emphasizing the need for proper inquiry and following investigating guidelines.

4. Setting Aside Orders for Fresh Adjudication: Citing precedents and legal principles, the ITAT set aside the orders of the authorities below and remanded the matter back to the AO for de novo assessment. This decision was made in the interest of justice, ensuring the assessee receives proper and sufficient opportunity to be heard.

5. Statistical Allowance of Appeal: The ITAT allowed the appeal of the revenue for statistical purposes, indicating that the decision was made to remand the matter back to the AO for fresh adjudication and in accordance with the law. The order was pronounced in court on a specified date.

In summary, the ITAT Kolkata, comprising Hon'ble Shri J.Sudhakar Reddy and Hon'ble Smt. Madhumita Roy, addressed various issues including lack of opportunity for the assessee, guidelines for deep investigation, and setting aside orders for fresh adjudication. The judgment emphasized the importance of fair procedures, proper inquiries, and following legal guidelines to ensure justice and compliance with the law.