Ratroi Maa Trading P.Ltd, Delhi V. ITO, Wazrd-21(1), New Delhi

ITA 7489/DEL/2018

AI Insights

The case involves Ratori Maa Trading, which appealed against the order of the CIT(A) enhancing the assessed income for the Assessment Year 2009-10. The primary contention was regarding the legality of the proceedings initiated under Section 148 against a company that had been struck off the register of companies, and the subsequent assessment order passed under Section 143(3) read with Section 147 of the Income Tax Act, 1961. The Tribunal found procedural lapses in the enhancement process by the CIT(A), leading to a partial allowance of the appeal. However, the Tribunal upheld the additions made by the Assessing Officer based on unexplained investments.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 121641 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 13-03-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 26-11-2018
• Other Referred Cases: Ravinder Kumar Aggarwal vs. ITO, Dwarka Portfolio P. Ltd. vs. CIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 27; 148; 201; 48; 13; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI YOGESH KUMAR US, JUDICIAL MEMBER I.T.A. No.7489/DEL/2018 Assessment Year 2009-10 Ratori Maa Trading M-98, 2 nd Floor Jagat Ram Park Laxmi Nagar New Delhi. Vs. ITO Ward-21(1) New Delhi TAN/PAN: AAECR0612A (Appellant) (Respondent) Appellant by: Shri Mukesh Jain, CA Shri Sahil Gupta, CA Respondent by: Shri R.S. Yadav, Sr.DR Date of hearing: 14 03 2023 Date of pronouncement: 13 06 2023 O R D E R PER PRADIP KUMAR KEDIA, A.M.: T he c a p ti o n e d a p pe a l h as b e e n fi le d b y t he a ss es se e ag ai n s t t h e or d e r o f t h e l d . Co mm i s si o n e r o f In c o me T a x ( A p pe a ls )- X X V , N e w D el h i ( ‘ C IT (A ) ’ i n sh ort ) da t e d 2 8 . 09 . 2 0 1 8 a ri si ng fr o m t he a ss es s m e n t or d e r d a te d 21. 1 2. 2 0 1 6 pa sse d b y t h e A s se s s i ng O ffi c e r (A O ) un de r S e c t i on 14 3( 3 ) r. w . S e c t i o n 1 47 o f t h e In c o me T a x A ct , 19 6 1 ( t h e A c t ) c on c e rn in g A Y 20 09- 10 . 2. T he su b s t an ti v e g r ou nd s o f a pp ea l ra i se d b y t h e a s se sse e a re e xt ra ct e d h e r e u n de r : “ 1 . O n t h e f a c t s a n d c i r c u m s t a n c e o f c a s e a n d i n l aw , t h e L d . C I T ( A ) h a s w r o n g l y e n h a n c e d t h e d i s a l l o w a n c e m a d e b y t h e Ld . A s s e s s i n g O f f i c e r i n m a k i n g a d d i t i o n o f R s . 4 2 , 1 0 ,2 0 0 / - b y i n vo k i n g t h e p r o v i s i o n o f 6 9 w . r . t . u n e x p l a i n e d i n v e s t m e n t t o R s . 3 , 6 9 , 5 5 ,26 0 / - . 2 . O n t h e f a c t s a n d c i r c u m s t a n c e o f c a s e a n d i n l a w, t h e L d . C I T ( A ) I.T.A. No.7489/Del/2018 2 a s w e l l a s t h e L d . A s s e s s i n g O f f i c e r h a s e r r e d i n ma k i n g a d d i t i o n o n t h e g r o u n d o t h e r t h a n r e c o rd e d r e a so n s . ” 3. I n t h e c o u rs e o f he ar i n g, t he l d . c o un s e l for t he a s se ss e e r ai se d a dd i t i o na l gr ou n d s of a p p e a l vi de a pp li c a ti on d a t e d 0 2. 03 . 2 02 3 w hi c h r e a d a s un d e r : “ 1 . T h a t t h e i n i t i a t i o n o f p ro c e e d i n g u s 1 4 8 a g a i n st t h e s t r i k e d o f f c o m p a n y a f t e r t h e d a t e o f s t r i k e o f f i s v o i d - a b - i n ti o . H e n c e , t h e n o t i c e i s s u e d u / s 1 4 8 o f t h e A c t a s w e l l a s f u r t h e r p r o c e ed i n g a r e v o i d - a b - i n i t i o . 2 . T h a t t h e L d . A s s e s s i n g O f f i c e r h a s f a i l e d t o a p pr e c i a t e t h e l e g a l p o s i t i o n t h a t w h e r e t h e a s s e s s e e c o m p a n y h a d f a i l e d i n t e r m s o f t h e n o t i c e i s s u e d u n d e r s e c t i o n 1 4 2 (1 ) , t h e n t h e p ro v i si o n s o f s e c t i o n 1 4 4 a r e a t t r a c t e d a n d t h e L d . A O h a s t o p a s s a n o r d e r to t h e b e s t o f h i s j u d g m e n t . I n s u c h s c e n a r i o , t h e a s s e s s m e n t o r d e r p as s e d u n d e r s e c t i o n 1 4 3 (3 ) o f t h e A c t i s i l l e g a l a n d v o i d a b i n i t i o . 3 . T h a t t h e i n i t i a t i o n o f p r o c e e d i n g s u / s . 1 4 8 a n d th e c o n s e q u e n t a s s e s s m e n t u / s 1 4 7 r .w . s 1 4 3 ( 3 ) i s c o n t r a r y t o l a w i n t h e a b s e n c e o f a n y i n c r i m i n a t i n g m a t e r i a l t o f o r m r e a so n t o b e l i e v e , as p e r t h e r e p o r t o f I n v e s t i g a t i o n W i n g a n d A O r e l i e d o n , w h i c h o n l y d i re c t s t h a t t h e AO h a s t o e x a m i n e t h e d e t a i l s a n d a f t e r t h i s e x a m i n a t i o n on l y t o d e t e r m i n e w h e t h e r t h e r e c o u l d b e a n y j u s t i f i c a t i o n f o r i n i t i at i o n o f a c t i o n u / s 1 4 7 r . w . s 1 4 3 ( 3 ) . T h u s , t h e i s s u e o f n o t i c e u / s 1 4 8 a n d t h e c o n s e q u e n t a s s e s s m e n t u / s 1 4 7 r . w . s 1 4 3 (3 ) i s w i t h o u t t h e a u t ho r i t y o f l a w a n d d o n o t p r o v i d e j u r i s d i c t i o n t o t h e A s s e s s i n g O f f i c e r to m a k e r e - a s s e s s m e n t u / s . 1 4 7 r . w . S e c t i o n 1 4 3 ( 3 ) o f t h e A c t . ” 4. T he l d . co un s e l fo r t he a ss e s see m o v e d ye t a n o t he r a d d i t i on al gr o un ds o f a p p e a l vi d e a pp li c a t i o n d a t ed 14 . 0 3. 2 0 23 w h i ch r e a d a s un d e r : “ 4 . T h a t t h e L d . C I T ( A ) i n e n h a n c i n g t h e a s s e s s m e n t a s w e l l a s L d . A s s e s s i n g O f f i c e r i n m a k i n g t h e a d d i t i o n , b o t h e r r ed i n l a w a n d i n f a c t s o f t h e c a s e t h a t t h e a d d i t i o n s a r e n o t su s t a i n a b l e i n l a w a s t h e sa m e h a s b e e n m a d e w i t h o u t i d e n t i f y i n g t h e p r e c i s e s e c t i o n un d e r w h i c h a d d i t i o n s a r e c o v e r e d . 5 . T h e L d . A s s e s s i n g O f f i c e r e r r e d i n r e -o p e n i n g o f t h e a s s e s s m e n t t h a t w h i l e r e c o r d i n g t h e " P e r f o r m a f o r a p p r o v a l t o i s s u e n o t i c e u / s 1 4 8 o f t h e A c t ” m e n t i o n e d t h a t c a s e f a l l s u n d e r t h e E x p l a na t i o n 2 ( c ) o f se c t i o n 1 4 7 o f t h e A c t w i t h o u t a p p r e c i a t i n g t h e f a c t t h a t th e n o o r i g i n a l a s s e s s m e n t w a s c o m p l e t e d u / s 1 4 3 ( 3 ) a n d t h e r e o p e n in g t h e a s s e s s m e n t b a s e d o n w r o n g p r e m i s e s , i s m e r e l y p a t e n t n o n -a p p l ic a t i o n o f m i n d . ” 5. A s pe r R u l e 11 o f t he In c o m e T a x [A p p el l a te T r i bu n al ] R u le s, I.T.A. No.7489/Del/2018 3 19 6 3, t h e a dd i t i o na l g ro un d s o f a p pe al n ot s e t fo r th in t he me m o ra n du m o f a p p ea l i s r e qu i r e d t o b e si g n e d a n d ve r i f i e d b y t h e a pp e l la n t as sp e c i fi ed u n de r S e ct i o n 1 4 0 o f t h e A ct an d n o ne ot he r. Th e A u t h o r i z e d R e pr e se n t a t i ve o r t h e co u ns e l o f t h e a ss e ss e e i s no t pe r m i tt e d t o m ov e a dd i t i o na l g r o u nd s o n h i s o w n a c cor d u nl e s s i t i s si g ne d b y t he a p p e ll a n t . H e nc e, o n ac c ou nt o f t hi s fu nd a m e nt al de fe c t, w e de c li ne t o g r a n t l e a ve f o r a d mi s si on o f su c h a dd it i o n a l gr o un ds. T he a d di t i o na l g r o un ds so ra i s e d a r e th us d i s m i s se d i n l im i n e. W hi l e h ol d i ng s o, w e a l so s i m u l t a n e o u sl y o b se rv e t h a t a po w e r o f a t t o r n e y e -S t a mp d a t e d 2 2. 0 9 . 201 9 h a s b e e n f i l e d w h e r e i n D ir e c t o r B i j a y S i n g h Ra j p u t o f t h e ass e s se e c o mp a ny a p p e a r s t o ha v e a u t h ori z e d S h ri M u ke sh K u ma r J a i n, C h a r t e r e d Ac c ou nt a n t fo r re p r e se n ta t i o n o n b eh al f o f t he a s se sse e . In t h e s ame v ei n, it i s po i n t e d ou t i n t h e c o ur se o f h e a r i n g t h at i n p u r s uan c e o f a p p l i c a t i o n mo ve d o n b eh al f o f t he a ss e s se e d at e d 0 9 . 0 1. 2 0 1 3 v id e S r. N o . B - 65 5 6 1 7 48 fo r v ol un t ar y w i n d i ng up , th e M i ni str y o f Co r p o ra te A ff ai rs h a s st r uc k o f f t he n a me o f t h e c o m pa ny fr o m t h e R e gi st ra r o f Co m p a n i e s w h i c h i s st a t e d to b e e ff e ct i ve fr o m 1 5. 02 . 2 01 3. Th us, t he p o w e r o f a t t or ne y h as b e en s i g n e d by t h e D i r e c to r w ho h a d be c o m e f u n c t u s o f f i c i o a nd w a s t hu s n o t a u t h o r i z e d t o si gn th e p ow e r o f a t t o r ne y. T h e A dd it i o n a l g ro un d si gn ed by t he c ou n se l o n t he ba s i s o f su c h no n - e st po w e r o f at t o r n e y, t h u s, i n an y e v e nt , c an no t be e n t e r t a i n e d. 6. W e n ow a d v e r t t o r e ma i n i n g g r ou nd f o r a d j u d i c a t ion. 7. B ri e f l y s t a t e d, t h e a ss e s se e - c o mp a n y w a s i nc or por a t e d o n 12 . 0 5. 2 0 0 8 . T he a ss es se e c o m p a n y f il e d re t u r n o f inc o me fo r A sse s s me nt Y ea r 2 00 9 -1 0 on 3 1 . 03. 2 0 10 w h ic h w a s pr oc e ss e d u n d e r S ec t i on 1 4 3( 1 ). S ub se qu e n t l y, ba s e d on i n f or ma t io n re c ei v ed f ro m t he I nv e s t i ga t io n Wi ng i n t h e c a s e o f t h e c o m p a n y, t h e A sse s si n g O ff ic e r fo u n d t ha t l a rg e a mo un t o f c as h de po si t s o n v a ri o us b ra nc he s I.T.A. No.7489/Del/2018 4 fo l l ow e d by t r a n s fe r t o a c c o u nt o f va r i ou s i n di vi d ua l s a n d b us i n e s s w it h i n t h e b a nk a n d ot he r ba nk s w e re d o ne b y th e a sse s se e . T he vo l u me o f c a sh t r a n sa c t i o n w as es t i m at e d a t R s. 1 9 cr or e d u r i n g t h e mo nt h o f D e c e mb e r , 200 9. T h e A sse s s i n g O ff i ce r t h e re a ft e r r ec or de d de t ai l e d r e a s o n u n de r S e ct i on 1 4 8( 2) o f t h e A c t t o co nc l ud e th at c ha rg e a bl e i nc o m e h a s es c a pe d a ss e ss m e n t . N ot i c e unde r S e c t i o n 14 8 w a s i ss ue d o n 30 . 03. 2 01 6 f or c a r r y in g o ut t h e ass e s s me n t u n d e r S ec t i on 1 47 o f t h e A ct . A ft e r a l o t o f f ol l ow up act i o n b y is s ua nc e o f se v e r e n ot i c e s un d e r S e c ti on 1 42 ( 1) o f t he A c t, o n e S h ri S u r in de r K u ma r Ra w a t a pp e a r e d o n b e ha l f o f t h e a s se s se e c o mpa n y o n 08 . 1 1. 2 0 1 6 a nd 1 6. 1 2. 20 16 . N o s u bst a n t i at i o n o f t h e so ur ce o f de p o s it s i n b a n k w a s m a d e b e f o re t he A sses si n g O ff ic e r. T he n ot i c e s re m ai ne d s u b st a n t i a l l y u n c o mp l ie d w i t h. C o n se q u e n t ly, t he A sse s si n g O ffi c e r a dv e r se l y v i e w e d t he n a t u r e an d sou r c e o f su c h l ar ge de po si t s. H o w e ve r , t h e A s se ss i ng O ffi c e r a p p li e d t h e p e a k c re di t t he or y a nd a ssu m e d th a t su bs e q ue n t r ec ur re n ce o f d e p os i t a r e re l at a bl e t o ea rl i e r w i th d r aw a l s an d a r gu a b l y s ou rced o ut o f p r e v i o u s w it h d ra w a l . B a se d on t he d oc t r i ne o f ‘p e a k c r e d i t’ e vo l v e d b y j ud i c i a l p r e c e d e n t s, a pa rt i a l re l i e f w a s gr a nt ed to t h e a s s es se e a s a ma t t e r o f b en ev o l e n c e o n th e g r ou nd s o f pr ep on de r a nc e o f pr o ba bi l i ti e s w he r e it c o ul d n ot a d duc e sa t i s fa c t ory ev i d e n c e t o su p p or t t h e s ou r ce o f d e p os i t . C o n s e qu en tl y, a n a m ou nt o f R s. 42 , 1 0, 2 0 0 / - w a s d e t e r m i n e d b y t h e A s s e ss in g O ff i c e r a s u ne x pl a i ne d i nv e s t me n t i n t he b an k b ei n g t he p e ak i n ve st m en t l yi ng i n t he b a n k a cc ou nt at a ny p oi n t o f ti m e d ur i n g t he ye ar . 7. A g gri e v e d, t he a ss e ss e e p r e f e r re d a p pe a l b e f or e th e CI T( A ). Th e C I T ( A ) p e r u s e d t he su b m i s si on s m a d e on b e h a l f of th e a sse ss ee a nd a l so t h e o bs er v a ti o n s ma d e i n t he ass e s s m e n t o rd e r b u t h ow e v e r di d n o t se e an y me r i t i n t h e p l e a o f t h e ass e s se e . T h e C I T ( A ), on t he ot h e r ha nd, ob se r v e d t h a t t he a ss e sse e h a s fa i l ed to p oi nt e d l y I.T.A. No.7489/Del/2018 5 de mo nst ra t e a n y s pe c i f i c c a rr yi ng o n o f bu si n e ss t o e xp l a i n t he na t ur e o f f l ow o f f un d s i n an d o ut o f t he b an k. T h e C IT ( A ) fu r t h e r no t e d t h at t he a ss e ss ee c ou ld no t e s t a b l i sh t he c arry in g o u t an y bu s in es s a c t i vi t i e s a s c on ve nt i o na l l y pe r c e i ve d. I n t he p ec ul i a r c ir cu ms t a nc e s, t h e CI T( A ) ob se r ve d t h a t c o n c e p t o f pe a k c re di t s h a ll no t a p pl y i n t he i n s ta n t c a s e a s t he i m m e d ia t e n e x us o f fl o w o f fu n d ha s n ot b ee n e s ta b l i s he d. T hu s, th e CI T( A ) w a s o f the v ie w t h a t e nt ir e d e p o si t r e qu i re s t o be t re at e d a s i n c o me i n t h e i n st a n t c a se i ns t e a d o f m e re ly a dd i n g th e p e a k s u m a s u n e x pl a i n ed i n c o me s i n c e t he a ss e s se e ha s n o t f ur ni sh e d a n y e x p l an a t i o n i n re s pe c t o f fl ow o f fu n d e x c e p t so me s t ra y ju st i f i ca t i o n s. T he C IT (A ) th u s e n h a n c e d t h e i nc o m e b y re v e r s i n g t h e pe a k c r e d i t t he or y . T he a s se s se d in co me w as ac c or d i ng l y e nh an c e d by R s. 3 , 27 , 4 5, 0 6 0/ - o v e r and a b o ve a dd i t i o ns o f Rs. 4 2, 10 , 2 0 0 / - ma de b y th e A sse ss i n g Offi c e r. 8. F u rt h e r a gg ri e ve d, t h e a s se s s ee pr e fe rr ed a p pe a l b e f or e t he Tr i bu n a l . H ow e ve r , w h at i s u n de r c ha l le ng e i s t h e enh a n ce m en t o f a ss es se d i nc o m e fr o m R s. 4 2, 10 , 2 00 /- to Rs. 3, 6 9 , 55 , 260 / - . A s pe r t he ma i n g r o un ds o f a p pe a l , t he as se ss e e h as n o t o b j ec te d t o t he i n c o me or i g i n a l l y a ss e s se d o f Rs. 4 2 , 10, 2 00 / - a nd co n f ir me d b y t h e CIT ( A ) . 9. W h e n t h e ma t te r w a s c al l e d for h e ar i n g, t h e l d . c o u n se l f or t h e a ss es se e s ub m i tt e d a t t h e ou t s e t t h at th e c o m pa ny is n o l o n ge r i n e xi st e n c e an d t h e n a me o f t h e c o m p a n y h a s be e n st r uc k o f f fr o m t he re g i s t e r o f m e mb e r s b a se d o n t h e a p pl ic a t i o n m o ve d b y t h e a ss e s se e. H en c e, i n v ie w o f th e re c o r d s o f Re gi s t r a r o f Co m pan i e s, t he a ss es se e - c o m p a n y i s n o l o ng er in e x i st e nc e . I t w a s c o n t e nd ed th at t he n ot ic e u n de r S e c ti on 1 48 h a s b e e n i ss u e d o n t h e c o m p a ny w hi c h w as w o un d u p b y t he o rd er o f t h e R eg ist r a r o f C o m p an i e s ( RO C) an d t he re fo r e , t h e n ot i c e u n de r S e c t i on 1 4 8 i s il l e ga l a n d t h e w h o l e pr o c e e d i n g r e q u i r e s t o b e q u a sh e d o n t hi s g r ou nd alo n e . In de fe ns e t o t hi s, th e l d. D R f or t he Re ve nu e po in t ed ou t t h at t hi s g ro un d h a s I.T.A. No.7489/Del/2018 6 ne v e r b e e n t ak en b e f or e t h e l o w e r a ut ho ri t i e s i n t he c o u r se o f a ss es s m e n t pro ce e di n g s a n d th e a ut ho r i z ed r e p r e s e n ta t i ve o f t he a ss es se e di d n ot fi l e an y e vi de n c e i n t hi s re ga r d at a n y st a g e. T h e A sse s si n g O f fi ce r w as n e ve r i nt i ma t ed a bo u t th e r e mo v a l o f t h e na me o f t h e c o m p a ny fr o m r eg i st e r o f m e m b e rs . T h e AR fo r a s se ss ee ra t he r a t t e n de d t h e a sse s s me nt p r o c e ed in gs a n d su ppr e ss e d t he c ru c i al f ac t s o f su c h n at ur e . T h e l d. D R fu r t he r ref e r r e d t o t he j ud g me n t r en de r e d b y t he H o n ’ b le D e l hi H i gh C o ur t in t he c as e o f Ra v in de r K u m ar A g g ar w a l v s. I T O j ud g m en t da te d 17 . 11. 2 0 22 i n W. P . (C) 7 12 2/ 20 1 9 & C M A P P L. 2 9 65 6/ 2 0 1 9 a n d c o n t e n d e d t h a t i t i s a ca se o f v o l u nt a r y w i n d i n g u p a n d t he e xi st in g l i ab i li t y o f t h e a ss es se e p r i o r t o s u c h v ol un t a ry w i n d i n g u p w i l l n ot d i s s o lv e b y t he a ct o f t he a s se s se e t o t h e d et r i m e nt o f t he R e v e n u e. S e c t i o n 25 0 o f t he C o m pa ni e s A c t , 201 3 p r o vi d es t h e sa fe gu a r d i n th i s r e g a r d. A re fe r e n c e w as m a d e to th e d e c i si on o f t h e T r ib un a l in t h e c a s e o f D war k a Po rt fo li o P. L t d . vs . CIT 2 65 /D e l / 20 1 7 o r de r da te d 1 7 t h Ma y , 20 2 2 t o s u p p o rt t h e c a se o f t h e Re ve n ue . I t w a s po i nt ed ou t t ha t t h e a ss es se e h as po s s ib ly d e c l ar e d i t s el f s ol ve n t t o e na bl e i t t o op t f or v ol un t a r y w in d i n g u p b e f ore R O C . 10 . T he l d . c ou n s el f or t he a s se ss e e n e xt c o n t e n de d t ha t t h e re o p e n i n g w a s ca rr i ed o ut fo r ma ki n g a d d i t i o ns t o w ards c a sh de p o s it s w h e r e a s u lt i ma t e a d d i t i o ns ha v e b ee n c a r r ie d o ut un de r S ec t i on 6 9 w i t h r e s pe ct t o u ne xp la i n e d i nv es t m e n t . Th us , t he b a si s o f a dd i t i o ns ha ve b e en m o di f i e d su b s e q ue nt t o t h e re a s on s r e c o r d e d un d e r S e c t i o n 1 4 8 ( 2) o f t h e A c t w h ic h i s n o t pe r m issi b l e i n la w a s ne w i ss u e s ha v e be e n r a ck e d u p b e y on d t h e j u r i sd ic ti on. T he l d. D R fo r t he R e ve nu e r e l i ed u po n t h e or d e r o f th e C I T (A ) i n t h i s r e g a r d. 11 . W e h a v e ca r e f ul ly c on si d e r e d t h e r i va l su b m is sio n s a n d t h e pe r u s ed t h e o r d e r s o f t h e a ut ho ri t i e s b e l ow . I.T.A. No.7489/Del/2018 7 12 . A s pe r t he gr o un ds o f a pp ea l , th e a sse s se e ha s on l y c ha l l e n ge d t he e n h a n c e m e nt t o t h e d i s a ll o w an ce ca r ri e d o ut by t h e A sse ss in g O ff ic e r. T he di s a l l o w a nc e c a r r ie d o ut b y t he A sse ssi n g O f fi c er pe r se i s no t u n de r c ha l le n g e . W e t h u s re fr ai n fr o m e x a m ini n g t he di s a l l o w a n c e c a r r i e d ou t b y t h e A s se ss i ng O f fi c er on m e ri ts w h i c h i s no t u n de r ch al l e n ge a nd d o n ot e xp r e s s a ny o pi ni o n on su c h a dd i t i o ns ca r r i e d o ut by t h e A s s e ss i n g O f fi c e r . T he di s c us si o n i s re s t r i c t e d t o t h e e n ha n c e me nt c a rr ie d out b y t he C IT ( A ) a l o n e. F o r t he e n h a n c e m e nt c a rr ie d ou t b y th e CI T( A ), w e ob se rv e t h a t i t i s i nc u m be nt u po n t he CI T (A ) u n de r S e c ti on 2 51 ( 2) t o pr ovi de re a so na bl e op po r t uni t y o f sh o w i n g c a us e a g a i n s t an y p ro p o se d e nh a n c e me nt t o t h e A ss e ss e e . T h u s, th e C I T (A ) i s p rev en t e d f ro m ma ki n g e nh an ce m e n t t o t h e a s se ss e d i nc o m e w i t h ou t op p ort u n i t y t o t he a ss e s se e . I n v i e w of t h e e xp l i c i t p ro vi si o n i n t h i s r e g a r d, i t i s ma nd a to ry r e q ui r e m e nt o f l aw t o ne ce s sa ri l y p r o v i d e op por t u ni t y fa i li n g w hi c h t he e nha nc e me n t c a rr i e d o ut i s u n su sta i na b l e in l aw . O n a pe ru s al o f th e or de r o f th e CI T( A ) , n ow he re refe re nc e t o su c h sh o w c a u se o r o p p o rt un i t y t o a ss es se e f or c a rr y i n g o ut e n ha nc e me n t i s fo u n d. T he r e f o re , t he e nh a nc e me n t m a d e by t he CIT (A ) i s un s u st a i n ab le i n la w . Th e e nha n c e m en t so c a rr i e d out by t h e CI T ( A ) t hu s st a n d r e v e r se d . 13 . G r ou n d N o. 1 o f t h e a ppe a l o f t he a sse s see i s thus a l lo w e d . 14 . A s pe r G ro un d N o . 2, t h e a s se s s ee ha s c ha l l en ge d t h e a c t i on o f t he l ow e r au th or it i e s fo r ma ki ng a d d i t i o n s o n t h e gro u n d o t h e r t ha n re c or d e d r ea so ns. W e do n ot se e a ny m e r i t i n s u c h pl ea . T he a dd i t i o ns c a rr ie d o ut b y t he A s se ss i n g O f fi c er sq u ar e l y fl ow s f ro m re a so ns r e c o rd e d , i . e . , l ar ge c a s h de p os i t s i n t h e b a n k a cc o u n t e t c . Th e a ddi t i on s ma d e c o m pr i se o f t he c as h d ep osi t s a nd e n ha nc e me n t o f q u a n t u m t h e r e o f i n t he ap pe ll a t e p r oc e e d i n g s. T he o b j e c t i on o f t he a ss e s se e h a s n o su bst a n c e. H e nc e , G r ou nd n o. 2 is di s m i ss e d . I.T.A. No.7489/Del/2018 8 15 . C o ns e q u e n t ly , t h e a dd i t i o na l g r ou nd s a r e di s m is se d w he r ea s t he ma i n gr ou n d s a r e pa r t l y a l l o w ed . 16 . I n t h e re s ul t , th e a p p e a l o f th e a s se ss e e i s par tl y a l l ow e d. Order pronounced in the open Court on 13/06/2023 Sd/- Sd/- [YOGESH KUMAR US] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: /06/2023 prabhat Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(A) 4. CIT 5. DR Assistant Registrar