Proceedings Under Remand Passed Without Application Of Mind: Delhi ITAT Deletes Addition Made By ITO
On finding that I-T Authorities had passed the same order which was earlier remanded, without proper application of mind, the New Delhi ITAT deleted the addition made by the ITOs.The Bench of Shamim Yahya (Accountant Member) observed that, “submission of the assessee has considerable cogency. Moreover, on earlier remand by the Tribunal, the authorities below have again passed the very...
On finding that I-T Authorities had passed the same order which was earlier remanded, without proper application of mind, the New Delhi ITAT deleted the addition made by the ITOs.
The Bench of Shamim Yahya (Accountant Member) observed that, “submission of the assessee has considerable cogency. Moreover, on earlier remand by the Tribunal, the authorities below have again passed the very same order without proper application of mind, in such circumstances, I set-aside the order of the authorities below and delete the addition.” (Para 7)
As per the brief facts of the case, information was received by the AO from the ADIT that the assessee had invested in immovable property in which more than 50% of the payment was made in cash. Thereafter, after recording reasons, proceedings u/s 147 were initiated, and notice u/s 148 was issued. Subsequently, the assessment was completed vide order u/s 147 r.w.s. 143(3) and an addition was made on account of investment in cash in immovable property and to capital account from undisclosed sources of income. The CIT(A) confirmed both the additions. The ITAT however remanded the back the matter to the file of AO to decide afresh.
The Coram found that in compliance to directions issued by the ITAT, the AO framed fresh assessment vide order u/s 254/147/143(3) and made an addition on account of investment made in cash in immovable property and to capital account from undisclosed sources of income with revised amount.
The ITAT noted that the assessee has only contested addition on account of investment made in cash in immovable property which was sustained by CIT(A), and the assessee has made these pleas before the lower authorities also.
However, the Bench pointed that the contentions raised by assessee were summarily rejected by the lower authorities.
Therefore, while considering the cogency of the assessee's submission, the ITAT set aside the order passed by the authorities and allowed the assessee's appeal.
Counsel for Appellant/ Taxpayer: Anil Jain
Counsel for Respondent/ Department: Om Prakash
Case Title: Shiv Kumar Nayyar verses DCIT
Case Number: ITA No.2333/DEL/2023