ITAT Remands Matter To CIT(A) To Determine Taxable Income After Examining Nature Of Credit Entries, Bank Accounts

The assessee/appellant had credited a total amount of Rs.4,00,74,711/- in the bank accounts of his various proprietary concerns. All the deposits were made in PNB, New Delhi in the names of Tirupati Textiles, Shree Balajee Fabrics, Bhagwati Textiles, Saraswati Textiles, Shree Mahalaxmi Fabrics respectively and total credit in the bank accounts of proprietary concerns was Rs.4,00,74,711. To verify the nature and source of the cash credits, the case was reopened under section 147 of the Income Tax Act.

However, there was no compliance during the assessment proceedings and no return of income was filed in response to notice issued under section 148 of the Income Tax Act.

The AO passed an order making additions as the source of the cash credits remained unexplained. The assessee filed an appeal in Form no. 35 raising various grounds for which notices were issued. However, there was no compliance on the part of the assessee. The notices were not only issued on the address given by the assessee in Form no. 35 but also on the latest address verified from the AO as well as from the PAN inquiry.

However, neither anybody attended during the appellate proceedings nor any written reply was filed. Since, the basis of reopening, the case was to inquire about the cash credits made by the assessee in the bank accounts of proprietary concerns, however, the assessee failed to appear either before the AO or before the CIT(A).

The ITAT deemed it proper to remand the matter to the file of the CIT(A) to determine the issue afresh and directed the assessee to comply with the notice of the revenue authorities promptly without seeking unnecessary adjournments.

Case Title: Subhash Chander Khanna Versus Income Tax Officer

Citation: ITA No. 1034/Del/2019

Counsel For Appellant: Advocate Ved Jain

Counsel For Respondent: Senior Departmental Representative Umesh Takyar

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