Tribunal orders re-examination of Rs.16.00 lakhs addition under section 69

The Tribunal directed the AO to re-examine the case regarding the addition of Rs.16.00 lakhs made under section 69 of the Act. The Tribunal found further verification necessary and allowed the appeal for statistical purposes, remitting the matter back to the AO for fresh consideration.

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Issues:
1. Confirmation of addition made by AO under section 144
2. Confirmation of addition of Rs.16.00 lakhs made by AO under section 69 of the Act

Issue 1: Confirmation of addition made by AO under section 144
The AO noticed a deposit of Rs.16.00 lakhs in the assessee's bank account and issued multiple notices under section 142(1) to which no response was received. The assessee claimed no land was sold but had entered into an agreement for colonization. The AO made the addition of Rs.16 lakhs as the assessee failed to explain the source of the deposit. The CIT (A) rejected the plea that no notice was received, admitted additional evidences, but found them insufficient to prove the source of the deposit, confirming the addition.

Issue 2: Confirmation of addition of Rs.16.00 lakhs made by AO under section 69 of the Act
The assessee argued before the Tribunal that the agreement with the colonizer was cancelled, and the amount was returned, hence no income accrued. The Tribunal noted the need for re-verification as the agreement was signed by both parties and the land was still in possession of the assessee. The Tribunal found the matter required further examination and directed the AO to re-examine the case after affording a reasonable opportunity to the assessee. The Tribunal allowed the appeal for statistical purposes, remitting the matter back to the AO for fresh consideration.

In conclusion, the Tribunal found the need for re-verification of the case regarding the addition of Rs.16.00 lakhs made by the AO under section 69 of the Act. The Tribunal directed the AO to re-examine the case in accordance with the law after providing a reasonable opportunity for the assessee to be heard. The appeal was allowed for statistical purposes, and the matter was remitted back to the AO for further proceedings.

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