2014 (6) TMI 328 - AT - Income Tax

Validity of CIT(A) s order Remand report not supplied - Confirmation of addition of operative and non-operative finance Addition on the basis of estimates Held that - CIT(A) has not supplied the remand report to the assessee - CIT(A) ought to have supplied the remand report to the assessee and after reviewing the comments from the assessee should have decided the appeals thus, the matter is to be remitted back to the CIT(A) for passing of fresh order Decided in favour of Assessee.

Summary

Issues:
12 appeals by the Assessee against orders of CIT(A) for Asst. Years 1998-99 to 2003-04 - quantum and penalty appeals.

Quantum Appeals:
1. The CIT(A) passed the order without confronting the appellant with the A.O.'s remand report, violating natural justice.
2. Confirmation of addition of Rs.2,50,000 on non-operative finance based on estimates needs deletion.
3. Confirmation of addition of Rs.4,04,38,563 on operative finance without proper consideration; peak credit in unaccounted bank accounts should be restricted.
4. Disagreement with CIT(A) on taxing peak credit in unaccounted bank accounts; appellant's plea not considered.
5. Direction to recompute estimated interest income on nonoperative and operative finance at 15% deemed illogical.
6. Confirmation of Rs.1,75,000 investment in FDRs from undisclosed sources challenged.

Penalty Appeals:
1. CIT(A) confirmed penalty of Rs.1,47,29,204 without independent consideration; penalty should be deleted.
2. Remand report not supplied to appellant; matter restored back to CIT(A) for fresh decision within three months.

The ITAT Ahmedabad allowed all 12 appeals by the Assessee for statistical purposes. The quantum appeals raised issues regarding additions on non-operative and operative finance, interest income computation, and investment in FDRs. The appellant challenged the CIT(A)'s orders for lack of proper consideration and violation of natural justice. The penalty appeals contested the penalty imposition without independent assessment. The Tribunal emphasized the importance of supplying the remand report to the appellant for a fair decision, setting aside the CIT(A)'s orders and directing expedited disposal within three months.