2020 (1) TMI 1098 - HC - Income Tax

Addition u/s 68 - HELD THAT - Tribunal restored the issue to the file of the AO for deciding the merits of the issue of addition u/s 68 afresh with the direction to the assessee to produce all the documents before the Assessing Officer. The order further permitted the AO to carry out enquiries which are deemed fit in the facts and circumstances of the case including inquiries from the banks of parties transacted. The assessee was to be afforded sufficient opportunity of hearing. Appellant states that the Assessing Officer has not considered the submissions advanced by the assessee before him and statutory appeals have already been preferred before the CIT (A) which are still pending. He states that the assessee would be satisfied if the Court were to issue directions to the CIT (A) to deal with all the grounds raised by the assessee in its statutory appeals in respect of the aforesaid two assessment orders. The appeals are accordingly disposed of with a direction to the CIT (A) to deal with all grounds raised by the appellant while deciding the said appeals

Summary

Issues:
Assessment orders challenged by the appellant before the High Court.

Analysis:
The appellant, an assessee, challenged the common order passed by the Income Tax Appellate Tribunal for the Assessment Years 2000-01 and 2001-02. The Tribunal decided certain issues raised by the assessee but found contradictory claims regarding the filing of documentary evidences. Consequently, the Tribunal directed the Assessing Officer to re-examine the issue of addition under Section 68 of the Act, instructing the assessee to produce all documents and allowing for necessary inquiries. Subsequently, the Assessing Officer passed assessment orders for both years. The appellant's counsel argued that the Assessing Officer did not consider the submissions made by the assessee, who had pending statutory appeals before the CIT (A). The counsel requested the Court to direct the CIT (A) to address all grounds raised in the statutory appeals, except those already decided by the ITAT.

The High Court disposed of the appeals with a direction to the CIT (A) to consider all grounds raised by the appellant in the pending statutory appeals, excluding issues concluded by the ITAT's decision. The Court's order effectively instructed the CIT (A) to address all remaining grounds raised by the appellant in the ongoing appeals. Finally, the Court concluded the judgment by stating that the appeals were dismissed, indicating that the matter was resolved by the direction given to the CIT (A) for further consideration of the grounds raised by the appellant in the pending statutory appeals.