ITAT Rajkot restored ₹4.30 crore addition under Section 69A as CIT(A) failed to decide the merits, remanding for fresh consideration.
Section 69A Addition Remanded for Fresh Hearing
The ITAT Rajkot restored a Section 69A addition of ₹4.30 crore and consequential penalty under Section 271(1)(c), holding that the CIT(A) failed to adjudicate the merits, depriving the assessee of a fair hearing.
The tribunal found that the appellate authority had summarily deleted the addition without addressing the evidence or recorded reasons, rendering the order non-speaking. The principle of audi alteram partem was violated.
On remand, the CIT(A) must conduct a proper hearing and record findings on the nature and source of unexplained investment. This decision underscores the importance of reasoned orders in appellate proceedings. Practitioners must ensure CIT(A) orders contain substantive analysis, especially in complex addition cases.
Citations
- Section 69A, Income Tax Act
- Section 271(1)(c), Income Tax Act
