2013 (11) TMI 1741 - AT - Income Tax

Summary

Issues Involved:
1. Delay in filing the appeal.
2. Deletion of addition u/s 69 of the Income-tax Act, 1961.

Summary:

Issue 1: Delay in Filing the Appeal

The Revenue's appeal was time-barred by a day's delay. The delay was attributed to the approval papers being received late on the last date for filing the appeal. The assessee did not oppose the condonation plea, and the delay was condoned.

Issue 2: Deletion of Addition u/s 69

The Revenue contested the CIT(A)'s decision to direct the Assessing Officer (AO) to delete the addition of Rs. 34,86,141/- u/s 69 as unexplained expenditure. The AO had added this amount to the assessee's income due to unexplained credit card payments. The assessee argued that a friend, Shri Neelamegan, had used his credit cards and repaid the amounts, which was supported by bank statements and other evidence. The CIT(A) accepted the assessee's explanation and directed the deletion of the addition.

However, the Tribunal found that the CIT(A) did not provide an opportunity for the AO to verify the evidence and submissions made by the assessee. The Tribunal observed that the CIT(A)'s findings violated the principles of natural justice. Therefore, the Tribunal remanded the matter back to the AO for re-examination, allowing the assessee to produce additional evidence if necessary.

Both the Revenue's appeal and the assessee's cross objections were allowed for statistical purposes.

Order pronounced on Wednesday, the 27th of November, 2013, at Chennai.