Tribunal grants appeals, remands for fresh assessment ensuring assessee's right to be heard

The Tribunal allowed all appeals for statistical purposes, remanding the issues back to the Assessing Officer for fresh adjudication in accordance with the law, ensuring due and reasonable opportunity of being heard to the assessee.

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Issues Involved:
1. Dismissal of the appeal by the Commissioner of Income Tax (Appeals) without considering the facts.
2. Validity of the notice issued under Section 148 of the Income Tax Act, 1961.
3. Confirmation of the addition of Rs. 17,00,000/- alleged to have been received in cash without evidence.

Detailed Analysis:

1. Dismissal of the Appeal by the Commissioner of Income Tax (Appeals):
The appellant contended that the Commissioner of Income Tax (Appeals) wrongly dismissed the appeal without thoroughly examining the facts of the case. The main grievance was the confirmation of the addition of Rs. 17,00,000/- made by the Assessing Officer (A.O.).

2. Validity of the Notice Issued Under Section 148 of the Income Tax Act, 1961:
The appellant argued that the reasons recorded by the A.O. for issuing the notice under Section 148 were incorrect. The A.O. had reopened the assessment based on information from ADIT (Inv.), Patiala, indicating that the assessee received cash payments of Rs. 17,00,000/- from M/s. Wembley Coop. H/B Society. The A.O. asked the assessee to account for this amount, but the assessee denied receiving such cash payments and claimed the receipts were forged.

3. Confirmation of the Addition of Rs. 17,00,000/- Alleged to Have Been Received in Cash Without Evidence:
The A.O. made the addition of Rs. 17,00,000/- to the income of the assessee, citing non-cooperation and the tallying of signatures on the alleged receipts with those on other documents. The assessee contended that the addition was based on photocopies of receipts without original evidence and without providing an opportunity for cross-examination. The Commissioner of Income Tax (Appeals) sustained the addition, stating that photocopies could be sufficient evidence if the assessee was confronted with this information.

The assessee submitted an affidavit denying the receipt of cash and requested verification of the signatures by a handwriting expert. The Tribunal admitted the additional evidence in the form of the affidavit and remanded the issue back to the A.O. for fresh adjudication, emphasizing the need for due and reasonable opportunity of being heard.

Separate Judgments:
The Tribunal's findings for ITA No. 663/Chd/2018 (A.Y. 2008-09) were applied similarly to ITA No. 664/Chd/2018 (A.Y. 2009-10). For ITA No. 673 & 674/Chd/2018, where the assessee was the payer, the Tribunal also remanded the matters back to the A.O. due to the direct nexus with the other appeals.

Conclusion:
The Tribunal allowed all appeals for statistical purposes, remanding the issues back to the A.O. for fresh adjudication in accordance with the law, ensuring due and reasonable opportunity of being heard to the assessee.

(Order pronounced in the open Court on 30/06/2021.)

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