2022 (5) TMI 448 - AT - Income Tax

Unexplained cash credits u/s.68 - As argued substantial amount of this was gift received from father and brother of the assessee - as prayed ne more opportunity of hearing be provided to present his case before the learned CIT (Appeals) - HELD THAT - We remit the issue back to the file of CIT (Appeals) for consideration afresh after examining the assessee's submissions and documents. We direct the learned CIT (Appeals) to examine afresh and the issue to be decided as per law. The assessee is also directed to submit all the relevant documents before the learned CIT (Appeals) for examination and co-operate with the authorities for early disposal of the case and not to seek unnecessary adjournments without valid reason. It is ordered accordingly. This ground of appeal is allowed for statistical purposes.

Summary

Issues: Delay in filing appeal, Addition of unexplained cash credits, Remittal of issue to CIT (Appeals)

Delay in filing appeal:
The assessee's appeal suffered from a 210-day delay in filing, attributed to ill health and the COVID-19 pandemic. Citing case law, the Tribunal acknowledged that such delays, supported by valid reasons, deserve condonation for the cause of substantial justice. The Tribunal found the delay unintentional and beyond the assessee's control, thus condoning the delay and proceeding with the adjudication on merits.

Addition of unexplained cash credits:
The assessee, an individual deriving income from retail trading, declared a loss for the Assessment Year 2015-16. The Assessing Officer added an amount of Rs. 73,40,000 as unexplained cash credits under section 68 of the Act, despite confirmation letters from donors stating the amount was gifted from the sale of plots. The CIT (Appeals) upheld the addition, prompting the assessee to appeal. During the hearing, the Tribunal found that the CIT (Appeals) erred in confirming the addition without considering the source of the funds as gifts from the assessee's father and brother. The Tribunal remitted the issue back to the CIT (Appeals) for fresh consideration, directing a reevaluation based on the assessee's submissions and documents.

Remittal of issue to CIT (Appeals):
After hearing arguments from both parties, the Tribunal remitted the issue back to the CIT (Appeals) for fresh consideration. The CIT (Appeals) was instructed to reexamine the matter, considering the assessee's submissions and documents, and decide in accordance with the law. The assessee was directed to cooperate with the authorities, submit relevant documents, and avoid unnecessary adjournments. The appeal was allowed for statistical purposes, and the order was pronounced on 5th May 2022.