2020 (5) TMI 233 - AT - Income Tax

Additions of Unexplained receipt on protective basis - HELD THAT - In view of the submissions, that the divergent view have been taken by the appellate authorities below, we are of the view that in the interest of justice and fair play the present impugned orders are required to be set aside with direction to Ld. CIT(A) to decide the appeals de novo in the light of aforesaid facts. Accordingly, the issues raised in the present appeals are remitted back to the file of the Ld. CIT(A) for deciding the same afresh as per law with direction that the ld. CIT(A) would decide the appeals relating to substantive proceedings at first and thereafter the appeals relating to protective assessments.

Issues Involved:
1. Appeals by the assessee(s) & Revenue against the order of Commissioner of Income Tax(Appeals)-III, Indore dated 21.03.2016, & 25.07.2016, 05.02.2018 pertaining to assessment years 2008-09 to 2010-11 & 2012-13.
2. Various grounds of appeal raised by the Revenue and the Assessee in multiple cases related to unexplained receipts, additions made by the Assessing Officer, and deletion of such additions by the CIT(A).
3. Validity of reassessment proceedings under sections 147 and 153C of the Income Tax Act.
4. Disallowance of undisclosed income and deductions claimed by the assessee.
5. Discrepancies in the orders of lower authorities leading to a remand back to the CIT(A) for fresh consideration.

Detailed Analysis:
1. The appeals involved interconnected cases related to a Kalani Group, with the Revenue challenging the deletion of additions made by the Assessing Officer on account of unexplained receipts. The CIT(A) had deleted these additions without fully appreciating the evidence presented during the assessment proceedings.
2. Specific amounts were disputed in different appeals, such as &8377; 1,67,63,500/-, &8377; 3,47,41,500/-, and &8377; 35,00,000/-, among others, highlighting discrepancies in the assessment of unexplained receipts on a protective basis.
3. In cases concerning Assessment Year 2012-13, the CIT(A) was criticized for admitting additional documentary evidence without a remand report and for deleting additions related to unexplained investments and receipts without sufficient documentary evidence from the assessee.
4. The Assessee challenged the validity of reassessment proceedings under section 147, arguing that the proceedings were initiated without proper enquiry and solely based on the direction of the Joint Commissioner of Income Tax, indicating a change of opinion.
5. The Revenue contested the deletion of disallowances made by the Assessing Officer, emphasizing the link between seized documents and the assessee, and the proper verification of books of account to justify the additions.
6. Due to divergent views taken by the appellate authorities, the Tribunal remanded the issues back to the CIT(A) for fresh consideration, directing a reevaluation of the appeals relating to substantive proceedings before those related to protective assessments.

This comprehensive analysis outlines the key issues and disputes addressed in the appellate tribunal's judgment, highlighting the complexities of the tax matters and the need for a thorough reassessment based on legal principles and evidentiary considerations.

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