ITAT restored the matter to CIT(A) to decide afresh

1. Original return in the case was filed declaring net taxable income Rs 5 lakhs.

2. Subsequently, a search was carried out at assessee’s residence and Rs 2 crores cash was found.

3. Notice u/s 153A (of Income Tax Act, 1961) was issued, and assessee filed return declaring income of Rs 5 lakhs.

4. Assessment was made at an income of Rs 2.23 crores.

5. CIT(A) partly allowed assessee’s appeal.

On appeal, the ITAT held as under:

6. We feel that the decision in the case of Suresh Nanda is certainly relevant but its reliance is to be determined only after considering the documents and explanation of the assessee vis-à-vis instant addition and not in a summary manner more particularly when the ITAT itself has restored the matter back to AO was in view of lack of evidence on record in that case and for violation of principles of natural justice, which is definitely not so in the instant case, like Rs.2 crores seizure and documents seized from his premises whether justifies the AO's addition of Rs.2,17,57,724/- could have been independently arrived at by the CIT(A).

7. We restore this issue back to CIT(A) for adjudicating this issue afresh, needless to say that assessee/legal heirs to be given opportunity of being heard.

Case Reference - DCIT vs. Late Dr. M.V. Rao

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH 'E' : NEW DELHI)

BEFORE SHRI A.T. VARKEY, JUDICIAL MEMBER AND

SHRI O.P. KANT, ACCOUNTANT MEMBER

ITA No.1912/Del./2013

(ASSESSMENT YEAR : 2002-03)

ITA No.1905/Del./2013

(ASSESSMENT YEAR : 2003-04)

ITA No.1914/Del./2013

(ASSESSMENT YEAR : 2004-05)

ITA No.2573/Del./2013

(ASSESSMENT YEAR : 2005-06)

ITA No.2574/Del./2013

(ASSESSMENT YEAR : 2006-07)