ITAT Chennai Sends Case Back for Re-verification as AO Not Given Opportunity

The Income Tax Appellate Tribunal (ITAT), Chennai, sent a case for fresh verification as the AO was not given enough opportunity to be heard.

The appellant, Manikandam Union Teachers Cooperative Thrift & Credit Society, did not file its ITR for AY 2016-17. The AO made an addition of Rs 6,37,58,207 as unexplained income, based on the information that the appellant has made huge cash deposits in the bank account.

Additionally, another Rs 8,54,841, was added as unexplained cash credits, as the source of deposits was not properly explained. The CIT(A) deleted both additions after accepting a reconciliation statement submitted by the assessee.

The Revenue challenged this decision before the tribunal, arguing that the reconciliation was accepted without giving the Assessing Officer a proper chance of hearing.

After reviewing the matter, the tribunal observed that the reconciliation statement was submitted for the first time before the CIT(A), and the assessing officer did not get an opportunity to rebut the statement. Therefore, the tribunal held that the matter required fresh verification and remanded it back to the Assessing Officer for fresh examination.