2011 (12) TMI 768 - AT - Income Tax

Summary

Issues involved: Appeal against order of Ld. CIT(A) Gandhinagar confirming addition made by AO for A.Y. 2004-05.

Issue 1: Challenge to the order of Ld. CIT(A) confirming addition made by AO.
The appellant contended that the order was illegal, unlawful, and against natural justice. The Ld. CIT(A) was criticized for passing the order in a cryptic manner without fully considering submissions and evidence. It was argued that the proceedings u/s 153C were illegal and should have been deemed as such by the Ld. CIT(A).

Issue 2: Allegation of illegal ex-parte assessment by AO.
The appellant argued that the ex-parte assessment by the AO was illegal and should not have been upheld by the Ld. CIT(A). The appellant claimed that there were valid reasons for failure to attend or produce books of accounts, including disputes and criminal proceedings involving the firm and its partners.

Issue 3: Dispute regarding unaccounted income disclosed in loose papers.
The appellant challenged the Ld. CIT(A)'s conclusion that the noting on loose papers amounted to unaccounted income of the firm. It was contended that the seized loose papers did not disclose unaccounted income, and this aspect needed to be reconsidered.

The Appellate Tribunal, after considering the submissions, decided that due to the ongoing dispute between the partners of the assessee firm, the assessee should be given another opportunity to make proper representation before the A.O. Therefore, the order of Ld. CIT(A) was set aside, and the matter was remanded back to the A.O. for a fresh decision on all issues.

The Tribunal refrained from adjudicating on the specific grounds raised by the assessee, as the entire matter was being sent back to the A.O. for fresh consideration. The appeal of the assessee was allowed for statistical purposes.