Cash Deposits made during Demonetization are out of Business receipt of bar and Restaurant: ITAT remands matter for consideration [Read Order]

The Bangalore bench of the Income Tax Appellate Tribunal ( ITAT ) has remanded the matter for consideration, stating that cash deposits made during demonetization are sourced from the business receipts of the bar and restaurant.

The filing of this appeal was delayed by 150 days. The assessee submitted a petition seeking condonation of the delay, providing reasons for the belated filing. After reviewing the reasons outlined in the condonation application, I found that there was a reasonable cause for the delayed submission of this appeal. Therefore, I granted condonation for the delay and proceeded to address the merits of the case in order to dispose of the matter.

The counsel for the Assessee  Sandeep Chalapathy argued that the assessee was illiterate, having received education only up to the 9th standard in Kannada medium. The submission stated that the notice sent via email could have been overlooked, possibly ending up in the spam folder, and the assessee remained unaware of it.

A plea was made for the matter to be reinstated in the files of the CIT (A) in the interest of justice and fairness, allowing the assessee a proper opportunity to present their case.

The single bench of the tribunal comprising George George K ( Vice President )  observed that  focus of the matter pertained to cash deposits made during the demonetization period. The assessee contended that, as the manager of a bar and restaurant, these deposits stemmed from business receipts. Asserting the availability of ample proof to explain the source of the deposits, the assessee requested a fair chance to present their case. In the pursuit of justice and fairness, an additional opportunity was deemed necessary.

The assessee was instructed to collaborate with the Revenue, avoiding unnecessary adjournments. To ensure a thorough resolution, the matter was returned to the files of the CIT (A), as ordered.

In the result, appeal filed by the assessee was allowed.

To Read the full text of the Order CLICK HERE

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