The Cuttack Bench of the Income Tax Appellate Tribunal (ITAT) rejected the assessing officer (AO)’s appeal challenging the Commissioner of Income Tax (Appeals) [CIT(A)] deletion of Rs. 3.4 Crore addition. This decision was made due to a lack of contradictory evidence from the revenue.
Rajesh Hans, the assessee had deposited Rs. 3,40,35,866 into his bank account but did not file an income tax return. The assessing officer found out about the deposition and categorized the whole amount as unexplained money.
On appeal before the CIT(A), the assessee submitted that the deposits were related to his work as a Bank Mitra for the Central Bank of India. To support his claim, the assessee submitted a certificate issued by the Central Bank of India on March 13, 2024.
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The CIT(A) reviewed the facts and found the assesee’s explanation credible. The CIT(A) accepted the bank’s certificate and deleted the addition of Rs. 3,40,35,866 from the assessee’s taxable income.
Aggrieved by the CIT(A)decision, the revenue challenged the order before the Cuttack Bench of ITAT on the grounds that CIT(A) relied solely on a certificate from the Central Bank of India, without verifying its authenticity and the CIT(A) did not request a remand report from the assessing officer (AO) to confirm the genuineness of the certificate.
The two-member bench comprising George Mathan (Judicial Member) and Manish Agarwal (Accountant Member) noted that the CIT(A) had adequately examined the facts and issued a decision after considering the nature of the deposits and the certificate from the Central Bank of India.
The tribunal observed that a notice was issued to the assessee and the assessing officer for the hearing before the CIT(A) and emphasized that it was the assessing officer’s responsibility to communicate and represent the case.
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The tribunal noted that the revenue failed to demonstrate any error or falsehood in the CIT(A)’s findings. Therefore, the appeal filed by the revenue was dismissed and the tribunal upheld CIT(A)’s decision to delete the addition of Rs. 3,40,35,866 under the head unexplained money.
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