TaxTMI 
TaxTMI 
2021 (6) TMI 895
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....egal, without jurisdiction and without application of mind as addition is made on protective basis and further ignored the fact that the investment was made in AY 2012-13 and not in AY 2011-12. 3. That the Ld. Appellate Authority wrongly & illegally confirmed the protective assessment without a clear finding regarding the addition on protective basis." 3. Referring to the submissions advanced on 06.05.2021 and 09.06.2021, the ld. Sr. DR invited attention to the reply of the department by way of information relatable to M/s. KOC Industries Ltd. wherein the position and facts required to be addressed has been clarified. It has been informed that this very addition had been made on a substantive basis therein and by way of abundant caution had also been made in the case of the assessee on a protective basis so as to keep the department's interest alive. Accordingly, elaborating her stand referring to submission made on earlier dates, it was submitted that the present appeal can accordingly be disposed off. However, her only concern was that the assessee had argued before the CIT(A) that cheque of Rs. 20 lacs dated 31.03.2011 was cleared in the next assessment year. Thi....
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....cash credit within the meaning of section 68 of the Act on substantive basis. Thus, to avoid double taxation, Rs. 20 lakhs was added back by the AO in the hands of the appellant on protective basis. 3. Appeal against the aforesaid order of assessment was preferred on 24/01/2019, in which the solitary ground against the impugned assessment was that the appellant had given a cheque of Rs. 20 lakhs, which was not declared before the close of the F.Y. 2010-11 4. In the appellate proceedings, the appellant merely stated the following: The Assessing Officer has made an addition of Rs. 20,00,000/- on protective basis in the hands of the assessee, also the said amount has been treated as unexplained credits in the hands of KOC Industries Limited on substantive basis. The Assessee has filed his income tax return on 29-02-2012 vide acknowledgement number-345125000290212 consisting of Salary income from M/s. KOC Industries Limited and interest income. The assessee has issued a cheque of Rs. 20,00,000/- dated 31-03-2011 as share application money in M/s. KOC Industries Limited. The cheque was cleared in the next financial year having assessment year....
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..... 10. The relevant findings under challenge are set out in para 3 which reads as under: "3. Appeal against the aforesaid order of assessment was preferred belatedly on 29/03/2019 and the reasons for the delay have been stated to be the non-linking of mobile number of the appellant with the Aadhar No. This explanation was also not substantiated either in the Appeal Memo or during the appellate proceedings. The aforesaid ground for condonation of delay in filing the instant appeal is not satisfactory enough or sufficient cause for this Appellate Authority to condone the delay. In addition to that, the appellant has also not explained the sources of making the aforesaid investment in the share capital of M/s. KOC Industries. Besides, the AO has been reasonable enough to make the assessment on protective basis. The appellant should not have any grievance against such assessment, the substantive assessment having been made in the hands of the company. Considered in this background, the instant appeal is dismissed on both counts, not being maintainable on account of inability of the appellant to show sufficient cause for filing the appeal late as also on account of no grievan....
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....the facts of the present case, it is seen that the adjudicating authority has passed a vague generalistic order where it is not clear whether any such opportunity in clear term was afforded to the assessee. It is seen that no care was taken even to set out the number of days by which the appeal was noticed to be delayed. 12.1. Accordingly, after hearing the parties, it was deemed appropriate to set aside the impugned order restoring the issue back to the file of the CIT(A) with direction to first set out the specific number of days by which the appeal was noticed to be late and thereafter afford a specific opportunity to the assessee to explain the delay. On merits also, it is seen that no specific reason, it is seen, has also been given to proceed to uphold the protective addition. In the light of the submissions of the AO as considered in ITA 1152/CHD/2019 which are stated to be identical in the present case also, it is seen that thus even on merits, the addition cannot be sustained. In the absence of any change in facts and circumstances as available on record, it is deemed appropriate to set aside the impugned order directing the CIT(A) to verify this factual position of fin....