₹19.5 Lakh Unexplained Cash Credit u/s 68 & 69 of Income Tax Act: ITAT Remands Case for Reassessment [Read Order]

The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) remanded a recent case back to the Commissioner of Income Tax (Appeals)[CIT(A)] based on improper fact adjudication and the authority's failure to consider relevant documents. The case involved an addition of ₹13 lakh made under Section 68 (unexplained cash credit) and ₹6.5 under Section 69 (unexplained money) of the Income Tax Act, 1961.

The assessee, Atul Dave, is the proprietor of Dave Travels. The assessment proceedings arose from an alleged unexplained cash transaction with Shree Sava Jewellers. The Income Tax department discovered that the jewellers had been involved in bogus accommodation entries. The assessing officer (AO) issues a notice under Section 148 to Dave asking for the details of ₹13 lakh transaction.

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The AO held the ₹13 lakhs as unexplained cash credit under Section 68 and an additional ₹6.5 lakh as unexplained money as per the provisions of Section 69A. The AO also initiated penalty proceedings under Sections 271AAC and 271DA of the Income Tax Act.

Aggrieved by this decision of the AO, the assessee followed an appeal to the CIT(A). However, the CIT(A) dismissed the appeal, stating that the assessee had not submitted the grounds of appeal and statement of facts of the case even though the assessee's authorised representative argued that the required submissions were filed on time.

Aggrieved by the dismissal of the appeal, the assessee followed up an appeal to the ITAT. The ITAT, upon observation, noted that CIT(A) failed to consider key documents and did not take cognisance of the detailed submissions made by the appellant. This procedural lapse needed to be corrected, and the court deemed it fit to remand the case.

The ITAT bench of Judicial Member Ms Suchitra Kamble remanded the case to the Commissioner of Income Tax (Appeals) files for fresh adjudication. The tribunal directed that the authority adequately evaluate all submissions and evidence. The tribunal asserted that natural justice principles regarding the legitimacy of cash transactions must be upheld without fail.

To Read the full text of the Order CLICK HERE

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