Tribunal allows appeal for statistical purposes pending criminal case, considers evidence of misconduct by Chartered Accountant.

The Tribunal set aside the matter to the Assessing Officer pending the criminal case, allowing the appeal for statistical purposes. The assessee's claim of no real income due to fraudulent activities by partners and the Chartered Accountant was supported by evidence of misconduct by the Chartered Accountant in filing returns without the assessee's consent. The Tribunal considered the findings of the professional body ICAI and decided that the issue should be resolved based on the outcome of the criminal case, diverging from the authorities' insistence on tax liability.

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Issues involved: Determination of income in the hands of the assessee based on fraudulent activities by partners and Chartered Accountant in filing returns.

Summary:
The appeal was filed by the assessee against the order of the Commissioner of Income Tax (Appeals) regarding the assessment year 2014-15, claiming no real income due to fraudulent activities by partners and the Chartered Accountant. The assessee contended that the returns of income filed were false and made without his knowledge, as he had no income in the relevant year due to health issues and retirement from previous businesses. The Chartered Accountant was found guilty of misconduct by the Institute of Chartered Accountants of India for filing returns without the assessee's consent. The assessee also initiated criminal proceedings against the perpetrators of the fraud. The authorities did not agree with the assessee, insisting on tax liability, but the Tribunal considered the evidence and findings of the professional body ICAI, concluding that the issue should be decided based on the outcome of the criminal case. The Tribunal set aside the matter to the Assessing Officer pending the criminal case, allowing the appeal for statistical purposes.

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