The Income Tax Appellate Tribunal, Delhi ‘SMC’ Bench, dealt with an appeal filed by Jolly Gupta against the order of CIT(A)-19, New Delhi, concerning an unexplained cash credit during the assessment year 2015-16.
Jolly Gupta, the appellant, contested additions made by the ITO Ward-57(3) pertaining to cash deposits amounting to Rs. 13,45,000, which were treated as unexplained cash credits under section 68 of the Income Tax Act, 1961. The appeal was originally heard by CIT(A), who upheld the addition.
At the tribunal, the appellant’s counsel argued that the CIT(A) had not provided an adequate opportunity for the appellant to substantiate claims with necessary documentation. It was highlighted that all relevant documents had been submitted, which supported the legitimacy of the cash credits.
The tribunal, led by Shri H.S. Sidhu, Judicial Member, noted that the order passed by CIT(A) was an ex parte non-speaking order and did not consider the extensive documentary evidence provided by the appellant. The tribunal decided to remand the case back to CIT(A), directing a fresh adjudication after giving the appellant an adequate opportunity to be heard.
This case underlines the importance of providing a fair hearing and considering all evidentiary submissions in tax disputes. The decision to remand the case back for re-examination reflects the tribunal’s commitment to ensuring justice is served through thorough and fair proceedings.
Jolly Gupta vs ITO Ward-57(3), New Delhi: Dispute Over Unexplained Cash Credit for AY 2015-16
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