2021 (3) TMI 658 - AT - Income Tax

Tribunal orders reassessment for verifying forgery claim, emphasizes thorough examination of evidence

The Tribunal ordered the matter to be sent back to the Assessing Officer for further verification, including the possibility of obtaining a forensic ... Unexplained cash deposited by the assessee in the Bank account - claim of the assessee of having no relation whatsoever with M/s. Finwise Services was not supported by any evidence in the form of an FIR filed by the assessee with the Police Department regarding forgery committed by unknown persons, who had allegedly opened the concerned Bank account by misusing the PAN Card of the assessee - As submitted that the AO may make further inquiry in the matter including getting the forensic report, if required, to verify the claim of the assessee that he was not the proprietor of M/s. Finwise Services and the Bank account in the name of the said concern was opened with ICICI Bank by someone else by forging the PAN Card and signature of the assessee - HELD THAT:- We are inclined to accept the contention of the ld. Counsel for the assessee and since the ld. D.R. has also not raised any objection for sending the matter back to the Assessing Officer for proper verification, set aside the impugned order of the ld. CIT(Appeals) on this issue and restore the matter to the file of the Assessing Officer for fresh consideration with a direction to verify the claim of the assessee in the light of the evidence brought on record in the form of complaints filed with the concerned Police Station as well as RBI. The Assessing Officer shall cause any further inquiry as he may deem fit in the facts and circumstances of the case - Appeal filed by the assessee is treated as allowed for statistical purposes. Issues:Addition of unexplained cash in bank accountAnalysis:The appeal was filed against the order of the Commissioner of Income Tax regarding the addition of Rs. 2,33,970 made by the Assessing Officer and confirmed by the CIT(Appeals) on account of unexplained cash deposited in the bank account. The assessee, an individual, denied any relation with the concerns where the cash was deposited. The Assessing Officer reopened the assessment due to undisclosed bank account and added the amount to the total income. The CIT(Appeals) upheld the addition, stating lack of evidence supporting the denial. The appellant argued forgery by unknown persons using his PAN card for the bank account. The CIT(Appeals) did not find merit in the appellant's submission, as no FIR was filed regarding the alleged forgery. The Tribunal considered fresh evidence, complaints filed with the Police Station and RBI, and decided to send the matter back to the Assessing Officer for further verification, including a forensic report if necessary.The Tribunal observed that the addition was based on the lack of evidence supporting the appellant's denial of relation with the concerned entities. The appellant claimed forgery by unknown persons using his PAN card for the bank account, supported by complaints filed with the Police Station and RBI. As the evidence was not considered by the lower authorities, the Tribunal decided to send the matter back to the Assessing Officer for proper verification, including a forensic report if required, to determine the authenticity of the appellant's claim. The decision was made to ensure a fair assessment based on all available evidence and to address the concerns raised by the appellant regarding the alleged forgery and unauthorized transactions.