TaxTMI 
TaxTMI 
2025 (3) TMI 1792
X X X X Extracts X X X X
X X X X Extracts X X X X
....ting the addition of Rs. 49,519/- made by the AO of 10% of Indirect expenses claimed as assessee has not furnished details/documents of such expenses. 3. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition of Rs. 10,00,000/- made by the AO on account of capital introduced by the assessee is treated as unexplained cash credit u/s. 68 of the I.T. Act, 1961. 4. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition of Rs. 19,07,000/- made by the AO on account of cash deposit in bank was treated as income of the assessee from undisclosed sources u/s. 69A of the I.T. Act, 1961. 5. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the addition of Rs. 1,11,89,435/- made by the AO on account of difference of balance between books of accounts of assessee and debtors was treated as undisclosed money u/s. 69A of the I.T. Act, 1961. In CO No. 20/JP/2024, the assessee has raised the following grounds of appeal:- 1. The Ld. AO is wrongly objecting on the deci....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rated any bank account in the name of New Generation Inc. and was not aware of any debtors and creditors. 3. Despite this statement by the assessee, AO was not satisfied with the claim of the assessee and was of the view that all the business transactions were either entered by the assessee himself or after his consent for the same and assessed the case after making additions u/s. 37, 68 and 69A of the Act amounting to Rs. 1,41,85,002/-. The assessee being aggrieved with the same preferred an appeal before the Ld. CIT(A), who in turn reversed the order of the AO and allowed the appeal of the assessee. Now the revenue being aggrieved with the appeal order, preferred the present appeal before us. The assessee also approached us through Cross Objection (C.O.). First, we are taking the matter of the revenue as the substantial issue is involved therein only, the assessee's C.O. is found to be only for namesake. 4. We have gone through the order of the AO passed u/s. 144 r.w.s. 143(3) of the Act, order of the Ld. CIT(A) and submissions/arguments of both sides along with grounds taken by the revenue. It is observed that as the assessee has taken the stand before the AO that he is a ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nfirmation of accounts in respect of certain sundry debtors and copies of affidavit, retracting the statement given before the AO. I have reasons to believe that such documentary evidence cannot be brushed aside and proceed to decide on the other grounds raised by the assessee, in light of the said documentary evidence." 6. We have gone through the affidavit of the assessee filed before the Ld. CIT(A) dated: 09.05.2022 vide page no. 21-23 of the paper book. It is observed that the serious allegations leveled against the AO and the Ld. CIT(A) is duty bound to take note of the contents of the affidavit filed before him in the light of the facts available on the file of the AO. It is also observed that on the guise of being benamidar of some Mr. Shripal Choudhary, Director of M/s. Emgee Cables and Communications Ltd., the assessee never produced and cooperated with the AO during the assessment proceedings but produced the same with affidavit before Ld. CIT(A). On these facts we need to understand the powers of the Ld. CIT(A) w.r.t. section 251 of the Act r.w.r 46A of the Rules as under: Section - 251, Income-tax Act, 1961 - FA, 2024 Powers of the Joint Commissione....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ase may be, by the appellant. Rule - 46A, Income-tax Rules, 1962 Production of additional evidence before the Joint Commissioner (Appeals) and Commissioner (Appeals). 46A. (1) The appellant shall not be entitled to produce before the Joint Commissioner (Appeals)or, as the case may be, the Commissioner (Appeals)], any evidence, whether oral or documentary, other than the evidence produced by him during the course of proceedings before the Assessing Officer, except in the following circumstances, namely: - (a) where the Assessing Officer has refused to admit evidence which ought to have been admitted; or (b) where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by the Assessing Officer; or (c) where the appellant was prevented by sufficient cause from producing before the Assessing Officer any evidence which is relevant to any ground of appeal; or (d) where the assessing Officer has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal. (2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of somebody. Secondly, at the AO level a person is representing himself as victim of fraud, the same person suddenly appeared before the first appellate authority with all the documents including tax audit report uploaded in his favour. Although here also there is a big contradiction in this story also, as discussed (supra) the assessee is still taking grounds that his statement before the AO was relied upon by the AO at the time of statement and the AO was supposed to rely on the same. On the other hand, in the same appellate proceeding, he is withdrawing his statement before the AO and participating in the proceedings as if he is the beneficial owner and not the benamidar. 9. It is carefully observed with the facts on record before us that the assessee was not presented with clear and clean intentions from day one and rather mis used the legal procedure made available for genuine assessees. The Ld. CIT(A) also failed to smell the intentions of the assessee and rather messed up the whole matter, instead of examining the same with due procedure of law diligently. We have gone through the financial and tax audit report of the assessee submitted along with the paper book vide page....