The assessee was partner in the firm that carried liquor business. Due to heart related ailments, the assessee did not carry any business and did not file any return of income. However, the Chartered Accountant with the connivance of the partners of the assessee prepared fake documents to support the ITR which was uploaded without the knowledge of the assessee. Therefore, before the CIT(A) the assessee contended that there was no real income in his hands and whatever the return of income that were furnished by the Chartered Accountant was false and without his knowledge. However, the CIT(A) rejected the contentions and upheld the additions made to the income of the assessee.

On appeal, the Tribunal took cognizance of the fact that Indian Institute of Chartered Accountant had held the Chartered Accountant guilty of preparing false documents and that the criminal complaint filed by the assessee was pending before Judicial Magistrate. Taking these factors into consideration, the Tribunal remanded the issue to the Assessing Officer for a decision based on the criminal case’s outcome.(AY. 2014-15)