SRI VR JEWELLERY, COIMBATORE V. ITO, NON CORP. CIRCLE-1, COIMBATORE

ITA 169/CHNY/2023

AI Insights

The case involves M/s. Sri VR Jewellery, which appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was related to the assessment year 2017-18, where the assessee was added with Rs. 112.66 Lacs as unexplained cash deposited during the demonetization period. The Assessing Officer had framed this assessment under section 143(3) of the Income Tax Act, and the CIT(A) merely endorsed the AO's view without independent findings. The assessee contested that the cash sales occurred before the demonetization and were supported by various financial records.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133832 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 24-04-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 08-02-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside

Judgement Text

आयकर अपीलीय अिधकरण ‘ए’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कु मार अ6वाल ,लेखा सद9 के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ITA No.169/Chn y/2023 (िनधाBरणवषB / Assessment Year: 2017-18) M/s.Sri VR Jewellery 98/6, Vysial Street, Coimbatore-641 001. बनाम/ Vs . ITO Non-Corporate Circle-1, Coimbatore. थायीलेखासं./जीआइआरसं. /P AN / G I R No. AC C FS - 0133-N (अ पीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Assessee by : Shri S. Sridhar,(Advocate)– Ld. AR थ कीओरसे/Revenue by : Shri AR.V Sreenivasan(Addl.CIT) – Ld.DR सुनवाईकीतारीख/Date of Hearing : 25-04-2023 घोषणाकीतारीख /Date of Pronouncement : 25-04-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 27-12-2022 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 27-12-2019. In the assessment order, the assessee has been saddled with addition of Rs.112.66 Lacs on account of unexplained cash deposited during demonetization period. The Ld. CIT(A) merely endorsed the view of Ld. AO. Aggrieved, the ITA No.169/Chny/2023 - 2 - assessee is in further appeal before us with various grounds assailing impugned additions. 2. The Ld. AR submitted that cash sales have taken place before demonetization period and the transactions are duly supported by stock register, VAT returns and cash book maintained by the assessee. The Ld. AR submitted that the detailed submissions made during appellate proceedings have not been considered and Ld. CIT(A) has merely endorsed the view of Ld. AO without rendering any independent findings. The Ld. Sr. DR opposed any interference in the impugned order. 3. Upon perusal of impugned order, we concur with the submissions made by Ld. AR that no independent findings have been rendered and the detailed submissions made by the assessee have not been considered. Therefore, we set aside the impugned order to the extent of additions as sustained in the impugned order and restore the appeal back to the file of Ld. CIT(A) to reconsider assessee’s submissions and render independent finding thereto. Needless to add that reasonable opportunity of hearing shall be granted to the assessee. The assessee, in turn, is directed to substantiate its stand. 4. The appeal stand allowed for statistical purposes. Order pronounced on 25 th April, 2023 Sd/- (MAHAVIR SINGH) उपा12 /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखासद9 /ACCOUNTANT MEMBER चे+ई/ Chennai; िदनांक / Dated : 25.04.2023 DS DSDS DS आदेशकीXितिलिपअ6ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु4/CIT 4. िवभागीय ितिनिध/DR 5. गाड9फाईल/GF