2013 (6) TMI 910 - AT - Income Tax

Summary

Issues involved: Appeal against order u/s 143(3) passed by ITO, unexplained cash credits, unexplained credit entry.

Issue 1 - Appeal against order u/s 143(3): The assessee appealed against the order passed by CIT(A) under section 143(3), contending that the CIT(A) erred in not appreciating the submissions and grounds of appeal, leading to the dismissal of the appeal. The Assessing Officer treated a gift received by the assessee as unexplained income after finding discrepancies in the donor's bank transactions and relationship with the assessee. Despite detailed explanations provided by the assessee, the Assessing Officer deemed the gift as non-genuine and added it to the assessee's income.

Issue 2 - Unexplained cash credits: The Assessing Officer made additions for unexplained cash credits and unexplained credit entry in the assessee's books. The assessee was required to provide details regarding these transactions, failing which the amounts were treated as unexplained income u/s 68 of the Income Tax Act. The Assessing Officer concluded that the credited amounts were the assessee's unaccounted money introduced into her books under different names, as the source of these credits was not substantiated by the assessee.

Judgment: On appeal, the CIT(A) upheld the Assessing Officer's order without providing detailed reasons, leading to the order being set aside for lack of explanation. The matter was remanded to the CIT(A) for a fresh order in accordance with the law, directing him to address all grounds of appeal in a speaking order. The appeal filed by the assessee was treated as allowed for statistical purposes.