Facts
The assessee raised the ground that the CIT(A) erred in law and facts and failed to appreciate and understand the applicability of provisions of Section 68 and 69A of the Income Tax Act, 1961 in the facts and circumstances. That Ld. AO invoked the provision of Section 68 of the Act, 1961 and CIT (Appeal) has blindly upheld the action of the AO against the appellant and enhanced the demand of the appellant by adding the credited amount in the bank.
Decision
The division bench of G.S Pannu, Hon’ble President and Chandra Mohan Garg, Judicial Member noted that the Assessing Officer has made one addition on account of income from undisclosed sources by taking out peak of credits in the accounts of different entities.
It was further noted that the ld. CIT(A) has not only confirmed the addition of Rs. 3,53,67,530/- made by the Assessing Officer but has also enhanced the addition to Rs. 65,92,97,926/-.
Senior DR did not contradict the conclusion drawn by the CIT(A) in the first appellate order enhancing the addition has been recorded by CIT(A) without issuing any show cause notice to the assessee.
The bench observed that the CIT(A) has not issued any show cause notice to the assessee showing his intention to enhance the addition on merits either by way of any notice or order sheet entry.
Therefore, the tribunal set aside the enhancement order passed by the CIT(A) and restored the matter to the file of CIT(A) for adjudication of grounds of assessee on merits after allowing due opportunity of hearing to the assessee on all the issues including enhancement of addition.
Case title: Ashok Kumar Chopra v/s ITO
Citation: ITA No. 773/Del/2019
