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2026 (5) TMI 1694
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....-21. 2. The assessee has raised the following grounds of appeal: "1. Addition of Rs. 1,64,02,358/- on account of considering the credits of the bank statement as unexplained money u/s 69A. On facts and in the circumstances of the case and in law, The Ld. CIT(A) by confirming the order passed by the Ld. AO has grossly erred in upholding the addition of Rs. 1,64,02,358/- on account of considering the credits of the bank statement as unexplained money. 2. The Ld. AO has grossly erred in making addition u/s 69A of the Income Tax Act, 1961. On facts and in the circumstances of the case and in law, The Ld. CIT(A) by confirming the order passed by the Ld. AO has grossly erred in making addition of the total c....
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....ong with other banking transactions. Since the assessee did not file return of income, these transactions remained unexplained and unverified, leading the Assessing Officer to form a belief that income chargeable to tax had escaped assessment within the meaning of section 147 of the Income tax Act ("the Act"). During the course of reassessment proceedings, the Assessing Officer issued various notices to the assessee asking for various details regarding the nature and source of cash deposits and bank credits. However, the Assessing Officer observed that the assessee failed to comply with any of the notices and remained completely noncompliant throughout the proceedings. Therefore, in order to obtain information, the Assessing Officer issued ....
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....edings only later upon consulting professionals. The CIT(Appeals), taking a liberal view, condoned the delay and admitted the appeal. 6. On merits, the assessee challenged the addition made under section 69A of the Act contending that the addition was unjustified and excessive. Along with Form 35, the assessee submitted certain documents such as bank statements, audit report in Form 3CD, and financial statements, and also disputed the findings of the Assessing Officer. However, during the course of appellate proceedings, the CIT(Appeals) issued multiple notices seeking detailed submissions and supporting evidence. Despite these opportunities, the assessee failed to furnish any written submissions or documentary evidence during the appell....
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....made by the Assessing Officer under section 69A of the Act was justified. Therefore, CIT(Appeals) confirmed the entire addition of Rs. 1,64,02,358/-. With regard to the grounds relating to penalty proceedings, the CIT(Appeals) held that initiation of penalty is a separate proceeding and does not require adjudication at this stage. Consequently, the appeal of the assessee was dismissed. 10. The assessee is in appeal before us against the order passed by CIT(Appeals) dismissing the appeal of the assessee. 11. We have heard the rival contentions and perused the material on record. On careful consideration of the facts and circumstances of the case, we find that the assessment has been completed under section 147 read with section 144 of ....
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.... case, though multiple opportunities were granted, the assessee has now come forward before us seeking an opportunity to explain the transactions. 14. In the interest of substantial justice, and to ensure that correct income is brought to tax in accordance with law, we deem it appropriate to restore the matter to the file of the Assessing Officer for de-novo adjudication. The Assessing Officer shall examine afresh the nature and source of the bank credits after considering the evidences and explanations to be furnished by the assessee and shall pass a speaking order in accordance with law after providing adequate opportunity of being heard. 15. At the same time, considering the consistent non-compliance on the part of the assessee at ....