The Cochin Bench of Income Tax Appellate Tribunal ( ITAT ) remanded the case to the Commissioner of Income Tax(Appeals)[CIT(A)] after noting that the appellant was not given a fair opportunity to explain cash deposits.
Baiju Kabeer, appellant-assessee, did not file the income tax return for Assessment Year(AY) 2017-18. The Assessing Officer(AO), found that he had deposited Rs. 1,00,95,500/- in ICICI Bank and issued a notice under Section 148 on March 30, 2021. In response, the assessee filed the return on September 29, 2021, declaring an income of Rs. 7,74,559/-.
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The AO completed the assessment on March 14, 2022, under Section 147 r.w.s. 144B, determining the total income as Rs. 15,73,061/- and adding Rs. 9,13,501/- under Section 69A as unexplained money.
The assessee appealed to the CIT(A), who partly allowed it and reduced the addition to Rs. 4,13,501/-, considering the difference between cash deposits and the declared turnover. Aggrieved by the order of the CIT(A),the assessee appealed before the tribunal.
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A single member bench of Inturi Rama Rao ( Accountant Member ) examined the arguments from both sides and reviewed the records. Considering the assessee’s claim of not having a fair chance to explain the source of cash deposits before the CIT(A), the ITAT sent the matter back for a fresh assessment, instructing the CIT(A) to provide a reasonable opportunity for a hearing.
Read More: ITAT Remands Case as Assessee was not given Final Opportunity to Explain Cash Deposits
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In short, the appeal filed by the assessee was allowed for statistical purposes.
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