INCOME TAX ACT, 1961

Section 250(6)

Appeal [CIT(A)] - Order - CIT(A) nowhere discussed plea of assessee -

Assessee was engaged in the business of property development, undertaking civil contract work and trading in building material. AO reopened the assessment, based on the information received from DDIT (Inv.) to the effect that assessee had deposited cheque in his account. Further, assessee had deposited a sum in account maintained on various dates and also withdrawn the cash from time to time. Accordingly, AO passed the assessment order under section 143(3) after making addition under section 68 and addition under section 69A. CIT(A) dismissed the assessee's appeal and confirmed the action of AO. Held: CIT(A) had nowhere discussed the plea of the assessee that AO made addition without making any enquiry to ascertain the genuineness of transaction and the reasons for rejecting the same. He confirmed the addition as deemed income merely stating that the assessee could not explain the source of the cash credit in question even during the appellate proceedings. CIT(A) had not discussed the reasons for not accepting the explanation regarding source of cash credit in question. During assessment proceedings not even a single notice was issued to the party, from whom the assessee had taken loan. CIT(A) had also ignored this aspect while passing the order. Thus, matter was remanded back to CIT(A) for fresh adjudication on merits.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2008-09

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