Ita/152/2004 Of L.m.hati And Co v. Comnr.of Income Tax

9. 15.05.2019 By way of this Income Tax Appeal, the appellant challenges order dated 16.04.2004 of the Income Tax Appellate Tribunal, Cuttack in ITA No.332 (CTK) of 2002. As it appears, while considering the matter, learned Tribunal has directed in paragraph-9 of its order, which is as under:- “9. Now coming to the deletion of addition under Section69, we are of the considered view that even if books of account are rejected, there is no bar for making addition u/s.68, section 69A and section 69B of the Act. Whenever books of account are rejected the A.O. has to estimate the business profit as per Chapter XIV of the I.T.Act keeping in view the provisions of section 28 to section 44DE of the Act. whereas additions in respect of cash credit and unexplained investments are contained in Chapter VI and if the assessee is unable to explain the cash credits or the investment, the addition is to be made separately irrespective of the fact that the business profit has been estimated by the A.O. by invoking provisions of section 144/145 of the Act. We are, therefore, not inclined to agree with the CIT(A) that when the income is estimated after rejecting the books of account, no separate addition in respect of cash credit or unexplained investment can be made. Even the figures by taking support of which the CIT(A) has deleted the additional made u/s. 69 are not supported by material on record. We, therefore, set aside the order of the CIT(A) in respect of the deletion of addition u/s. 69 and restore the matter back to the file of the A.O. to decide the issue de novo after giving due opportunity of to the assessee. As it is the case of security deposit mainly with O.M.C. Port Trust, the assessee will not feel any difficulty in bringing certificate from them and reconciling the same as per bank statement.” In view of the above, the instant Appeal is disposed of with the observation that learned Assessing Officer will completely follow the instruction as quoted above and give reasonable opportunity to the assessee by following the law prevalent as on today. ……..………………….. K.S. JHAVERI (Chief Justice) ……..………………….. K.R. MOHAPATRA (Judge)