2013 (7) TMI 1221 - AT - Income Tax

Summary

Issues involved:
The appeal filed by the Revenue against the order of CIT(A) regarding the admission of additional evidence u/r 46A and deletion of additions made on account of unexplained cash credit u/s 68 of Income Tax Act 1961.

Admission of additional evidence u/r 46A:
The assessee deposited cash amounting to Rs. 20,02,801 in a bank account, leading to an addition under section 68 as unexplained cash deposit. The assessee's explanations were deemed insufficient by the AO, resulting in the addition. However, in the appeal, the assessee presented new evidence related to the sale of land and gifts received, which was accepted by CIT(A) under Rule 46A. The CIT(A) considered the fresh evidence as relevant and restored it for further examination, granting relief to the assessee.

Deletion of additions u/s 68:
The Revenue contended that the deposits made by the assessee were structured to avoid detection, and the evidence provided was insufficient to support the assessee's claims. The assessing officer had given multiple opportunities to the assessee to explain the source of funds, but the explanations were found lacking. However, the CIT(A) accepted the explanations provided by the assessee, including confirmations from relevant parties, and granted relief based on the new evidence presented. The tribunal decided to restore the issue back to the Assessing Officer for a thorough examination in accordance with the law, emphasizing the need for a detailed investigation into the ownership of land, sale transactions, and fund retention reasons.

Conclusion:
The tribunal allowed the appeal of the Revenue for statistical purposes, directing a re-examination of the case by the Assessing Officer to ensure a fair and comprehensive assessment based on all relevant evidence and legal considerations.