Tribunal orders re-examination by CIT(A) due to lack of opportunity, improper inquiry, and inadequate consideration.

The Tribunal remanded the case back to the Ld. CIT(A) for re-examination as it found that the assessee was not given sufficient opportunity to present evidence, the addition under Section 69A was made without proper inquiry, and the past income and savings of the assessee were not adequately considered. The Tribunal allowed the appeal for statistical purposes, directing a fresh examination of the source of cash based on past savings and tax filings, with the provision of reasonable opportunity to the assessee.

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Issues Involved:
1. Natural Justice and Sufficient Opportunity
2. Addition under Section 69A without Inquiry
3. Acceptance of Past Returns and Availability of Cash

Summary:

1. Natural Justice and Sufficient Opportunity:
The assessee contended that the assessment was against natural justice as sufficient opportunity was not provided. The Tribunal noted that the assessee was given multiple opportunities to submit evidence but failed to do so. The assessee argued that the statement of a key witness was not confronted to him timely, which hindered his ability to produce evidence. The Tribunal found that the Ld. CIT(A) did not address these contentions adequately and remanded the matter for re-examination.

2. Addition under Section 69A without Inquiry:
The assessee argued that the addition of Rs. 11,65,000/- under Section 69A was made without proper inquiry and ignoring circumstantial evidence. The AO had requisitioned and seized the amount based on information from ADCP (Narcotics), Ludhiana. The assessee claimed the money belonged to third parties, but the AO found the story concocted and rejected it. The Tribunal noted that the AO's findings were based on the principle of human probabilities and upheld the addition initially but remanded for further examination.

3. Acceptance of Past Returns and Availability of Cash:
The assessee claimed that the cash was from his past savings, as his income for the last six years was accepted by the AO. The Tribunal noted that the assessee provided details of past income and savings, which were not adequately considered by the Ld. CIT(A). The Tribunal found no contradiction in the alternate submission regarding past savings and remanded the matter for fresh examination of this contention by the Ld. CIT(A).

Conclusion:
The Tribunal allowed the appeal for statistical purposes, setting aside the matter to the file of the Ld. CIT(A) to re-examine the alternate contention of the assessee regarding the source of cash based on past savings and tax filings, after providing reasonable opportunity to the assessee. The order was pronounced in the open Court on 04/07/2023.

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