Assessee's Appeal Partially Allowed: Cash Addition Deemed Unjustifiable

The appeal filed by the Assessee against the order of the CIT(A)-6, Ahmedabad for the Assessment Year 2013-14 was partially allowed by the Tribunal. The Tribunal dismissed the ground challenging the absence of a notice under Section 143(2) but allowed the Assessee's challenge regarding the addition of cash amount of Rs.6,00,000, as the Assessee demonstrated the cash was duly recorded and provided sufficient evidence to prove the genuineness of the transactions. Consequently, the additions made by the Assessing Officer were deemed unjustifiable. The decision was pronounced on 2nd June 2023.

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Issues involved:
The appeal filed by the Assessee against the order passed by the CIT(A)-6, Ahmedabad for the Assessment Year 2013-14.

Issue 1: Notice under Section 143(2) of the Income Tax Act
The Assessee contended that the order passed without issuing a mandatory notice under Section 143(2) is void. The Assessing Officer argued that the Assessee participated in the assessment proceedings under Section 148 & 143(3) read with Section 147, justifying the assessment order under Section 292BB. The Tribunal found that the show cause notice was represented, and the Assessee was given an opportunity to present their case during the assessment proceedings. Even though the notice under Section 143(2) was not explicitly mentioned in the record, the Tribunal concluded that the notice was issued, and the CIT(A)'s observations did not require interference. Hence, ground no.1 was dismissed.

Issue 2: Addition of Cash Amount
The Assessee challenged the addition of Rs.6,00,000 of cash, asserting it was duly recorded in the books. The Assessee provided books of accounts during the assessment proceedings, demonstrating the cash was entered for the relevant assessment year. The Assessing Officer raised concerns about the books of accounts being maintained post-search and potentially fabricated. However, the Tribunal noted that the Assessing Officer did not doubt the books produced during the assessment proceedings. The Assessee also furnished details of the persons involved in the cash transactions, meeting the onus to prove the genuineness of the transactions. Consequently, the addition made by the Assessing Officer was deemed unjustifiable, and grounds no.2 & 3 were allowed.

In conclusion, the appeal filed by the Assessee was partly allowed by the Tribunal, with the decision pronounced on 2nd June 2023.

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