2020 (3) TMI 1439 - AT - Income Tax

Addition of sundry credits - reliance on amount reflected in the balance-sheet - as per Revenue s case that since the assessee had sought umpteen opportunities before AO and also did not appear before the CIT(A), the impugned addition has rightly been made going by the original balance-sheet reflecting the amount in the balance-sheet - As argued assessee s corrected balance-sheet filed before the Assessing Officer has not even been considered in either of the lower proceedings - HELD THAT - We deem it appropriate that larger interest of justice would be met in case the Assessing Officer re-examines the entire issue afresh going by the corresponding details in both of the above stated balance-sheets. Assessee has undertaken to place on record all necessary details in the consequential proceedings at assessee s own risk and responsibility. The assessee is therefore directed to appear before the Assessing Officer alongwith a copy of the instant order - Decided in favour of assessee for statistical purposes therefore. Assessee s appeal is allowed for statistical purposes.

Summary

Issues:
1. Appeal against assessment order for AY 2014-15.
2. Addition of sundry credits in assessment proceedings.
3. Consideration of corrected balance-sheet filed by the assessee.
4. Direction for re-examination by the Assessing Officer.

Analysis:
The appeal before the Appellate Tribunal ITAT Ranchi pertained to the assessment year 2014-15 challenging the order of the Commissioner of Income Tax (Appeals) Ranchi. The primary issue revolved around the addition of sundry credits totaling Rs. 212,38,311 made during the assessment proceedings, which was upheld in the lower appellate proceedings. The Revenue contended that the addition was justified as the amount was reflected in the original balance-sheet as on 31.03.2013. Conversely, the appellant argued that the corrected balance-sheet submitted to the Assessing Officer was not considered in the previous proceedings, emphasizing the absence of such creditors in the corrected balance-sheet. The Tribunal acknowledged the need for a fresh examination of the issue, directing the Assessing Officer to review both balance-sheets and consider all relevant details. The appellant was instructed to provide necessary information at their own risk and responsibility, with a deadline set for appearance before the Assessing Officer.

The Tribunal found merit in the appellant's grievance and allowed the appeal for statistical purposes. The judgment highlighted the importance of ensuring justice by re-examining the discrepancies in the balance-sheets and considering all relevant information. The decision to direct the Assessing Officer to conduct a thorough review aimed at resolving the conflicting claims presented by the parties. The Tribunal's order underscored the significance of addressing the substantive issues raised by the appellant, emphasizing the need for a fair and comprehensive assessment process. The judgment concluded with the pronouncement that the appeal was allowed for statistical purposes, indicating a procedural victory for the appellant while emphasizing the need for a detailed reassessment by the tax authorities.

In summary, the judgment by the Appellate Tribunal ITAT Ranchi addressed the issues raised by the appellant regarding the addition of sundry credits in the assessment proceedings for AY 2014-15. The decision highlighted the discrepancies between the original and corrected balance-sheets, necessitating a re-examination by the Assessing Officer to ensure a fair and just assessment process. The Tribunal's directive for a fresh review underscored the importance of considering all relevant details and upholding the principles of natural justice in tax proceedings.