Assessment made on wrong cash book printed from tally package with negative balances remitted back

Assessment made on the basis of wrong cash book printed out from tally package with negative figures, ignoring correct cash book remanded by ITAT

ABCAUS Case Law Citation:
ABCAUS 2931 (2019) (05) ITAT

The appeals filed by the separate was directed against the common order of the Commissioner of Income Tax (Appeals) in confirming the addition made by the Assessing Officer (AO) u/s 68 of the Income Tax Act, 1961 (the Act) for the negative cash balances.

The assessee submitted that the Assessing Officer had taken into consideration the wrong cash book while making the addition ignoring the correct cash book filed before him.

It was submitted that before the CIT(A), the assessee had taken a plea that the due to technical error while taking print out from tally package, the negative cash book was furnished, however, when it came to the knowledge of the assessee, the correct cash book was furnished, but the Assessing Officer refused to take the same on record. The CIT(A) did not accept the contention of the assessee and confirmed the action of the Assessing Officer.

It was further submitted that although the correct cash book was filed before the CIT(A), he did not give any findings on the same. Therefore, the matter be restored to the file of the Assessing Officer to consider the correct cash book and decide the issue afresh.

The Department agreed to the submissions of the assessee and also further submitted that to avoid the multiplicity of the proceedings, the matter should be restored to the file of the Assessing Officer.

Accordingly, the Tribunal set aside the orders of lower authorities and remitted this issue to the file of the Assessing Officer for limited purposes that to accept the correct cash book on record and after verification decide the issue afresh as per law.

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