CIT(A) has the power and discretion to accept the revised figures during appellate proceedings

 

The Mumbai ITAT, in Ramel Ajit Singh v. ITO (ITA No. 175/Mum/2025 for AY 2014-15) has held as under:

“While the Assessing Officer cannot accept a revised computation of income without a revised return, the CIT(A) has the power and discretion to accept such revised figures during appellate proceedings – and the ITAT held that the CIT(A) erred in not doing so in this case.”

With this, ITAT has allowed partial relief to a small garage owner by deleting an addition of Rs. 3,53,884/- made under Section 68 for alleged unexplained cash deposits. The assessee, engaged in automobile repair under “Raju Auto Garage,” had deposited Rs. 3.80 lakhs in Himachal Mitra Mandal Co-op Credit Society, which the AO treated as unexplained. The Tribunal accepted the revised computation showing gross receipts of Rs. 8.42 lakhs and taxes paid thereon, ruling that once the business receipts are accepted, no separate addition under Section 68 survives. However, the ITAT upheld the validity of the reassessment under Section 147, as the AO had tangible material and the assessee did not object during the reopening. The delay in filing appeal (over 2 years) was condoned considering the assessee’s limited means and reliance on a tax consultant.

The copy of the order is as under:

1746720261441