Appeal allowed, remanded for fresh adjudication, emphasizing thorough process for proper hearing.

The appeal was allowed by the Tribunal, remanding the issue to the Assessing Officer for fresh adjudication. The Assessing Officer was directed to consider all submissions and necessary documents, ensuring a proper hearing for the assessee. The Tribunal emphasized the importance of a thorough adjudication process, allowing the assessee the opportunity to present all relevant details. The appeal was allowed for statistical purposes, with the decision pronounced in open court on 05/09/2022.

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Issues:
Challenge to impugned order dated 28/06/2019 under section 250 of the Income Tax Act, 1961 for the assessment year 2014-15 regarding addition of Rs.26,20,000 on account of Cash Deposits in Bank.

Analysis:
The appeal was filed by the assessee against the order passed by the learned Commissioner of Income Tax (Appeals) concerning the addition of Rs.26,20,000 on account of cash deposits in the bank. The assessee, an individual and proprietor of a firm, derived income from business and other sources, specifically courier services. The Assessing Officer observed a variance in receipts under section 194C compared to the income tax return, along with significant cash deposits in the savings bank account. The AO treated the cash deposit of Rs. 26 lakh as income earned from undisclosed sources. In the appeal before the CIT(A), the assessee submitted additional evidence, including confirmation from relatives, passbook copies, and balance-sheet of the firm. However, the CIT(A) rejected the additional evidence and held that the assessee failed to prove the creditworthiness and genuineness of transactions with relatives, and the availability of cash with the proprietary concern. The Tribunal noted that the documents submitted as additional evidence were not filed before the lower authorities, and the impugned addition was made without these details. Therefore, in the interest of justice, the issue was remanded to the Assessing Officer for fresh adjudication, allowing the assessee an opportunity to present all details. The Assessing Officer was directed to consider all submissions and necessary documents for a complete adjudication of the issue.

The Tribunal emphasized that no order should be passed without affording the assessee a proper hearing and the Assessing Officer had the liberty to examine any additional documents or details required for a thorough adjudication. Consequently, the sole ground raised in the appeal was allowed for statistical purposes, and the appeal by the assessee was allowed. The decision was pronounced in open court on 05/09/2022.

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