Commissioner erred in not providing fair opportunity to assessee. Tribunal remits appeal for fresh consideration.

The case involved disallowance of unexplained cash deposits and loans by the assessing officer. The Commissioner of Income Tax (Appeals) erred in not providing a reasonable opportunity for the assessee to be heard and lacked the power to remit the issue back to the assessing officer. The Tribunal remitted the entire appeal back to the assessing officer for fresh consideration, emphasizing the importance of fair hearings and the submission of additional evidence. The appeal of the assessee was treated as allowed for statistical purposes, ensuring a fair opportunity for the assessee throughout the process.

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Issues:
- Disallowance of unexplained cash deposits
- Disallowance of unexplained loans
- Proper opportunity of being heard by the assessee
- Remittance of the case back to the Assessing Officer
- Additional evidence submission by the assessee
- Powers of the Commissioner of Income Tax (Appeals)
- Fair opportunity of being heard for the assessee

Disallowance of Unexplained Cash Deposits:
The assessee, a Private Ltd. company, filed its return of income for AY 2015-16, admitting a loss. The assessment completed by the Ld. AO disallowed an amount towards 'unexplained cash deposits' and 'unexplained loans.' The Ld. CIT(A) sustained the addition of cash deposits but remitted the matter of unexplained loans back to the Ld. AO for verification. The appellant challenged the order, arguing that all cash deposits were receipts from customers and that the amount had already been offered to tax. The Tribunal found that the Ld. CIT(A) erred in not providing a reasonable opportunity of being heard but lacked the power to remit the issue back to the AO. The entire appeal was remitted back to the Ld. AO for fresh consideration, emphasizing fair opportunity for the assessee to be heard.

Disallowance of Unexplained Loans:
Regarding the addition made towards unexplained loans, the Ld. CIT(A) remitted the matter back to the AO for verification as the assessee provided certain details and confirmation letters. The Tribunal found the remittance by the CIT(A) erroneous as he lacked the authority under the Act to do so. The Tribunal set aside the CIT(A)'s order and remitted the entire appeal back to the AO for fresh consideration, stressing the need for the assessee to be given a fair opportunity to present additional evidence.

Proper Opportunity of Being Heard by the Assessee:
The AR argued that the AO did not offer a proper opportunity to the assessee and passed an ex-parte order. The Tribunal noted that neither the assessee nor its representative appeared before the CIT(A) despite opportunities provided. While acknowledging the lack of proper opportunity, the Tribunal emphasized the need for fair hearings and remitted the case back to the AO for fresh consideration.

Remittance of the Case Back to the Assessing Officer:
The Tribunal found the remittance of the issue of unsecured creditors by the CIT(A) to the AO as erroneous, as the CIT(A) lacked such powers under the Act. The Tribunal set aside the CIT(A)'s order and remitted the entire appeal back to the AO for fresh consideration, ensuring a fair opportunity for the assessee to present additional evidence.

Additional Evidence Submission by the Assessee:
The Tribunal emphasized the requirement for additional evidence to be produced before the Revenue Authorities and directed the case to be remitted back to the AO for fresh consideration, highlighting the need for fair hearings and cooperation from the assessee or its counsel.

Powers of the Commissioner of Income Tax (Appeals):
The Tribunal clarified that the CIT(A) does not have the authority to remit issues back to the AO and set aside the CIT(A)'s order, remitting the entire appeal back to the AO for fresh consideration.

Fair Opportunity of Being Heard for the Assessee:
The Tribunal stressed the importance of fair opportunities for the assessee to be heard, directing the AO to provide such opportunities and admitting additional evidence if necessary. Failure to cooperate may result in appropriate orders being passed by the CIT(A) based on the materials before him.

In conclusion, the appeal of the assessee was treated as allowed for statistical purposes, and the case was remitted back to the AO for fresh consideration with a focus on fair hearings and the submission of additional evidence.

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