The Chennai Bench of Income Tax Appellate Tribunal(ITAT) granted another opportunity to the assessee to substantiate cash deposits of Rs. 54.70 Lakh made during the demonetization period, subject to a cost of Rs. 5,000.
Nagarajan Manivannan,appellant-assessee, appealed against the order 1-07-2024 passed by the Commissioner of Income Tax (Appeals)[CIT(A)] concerning an assessment made by the Assessing Officer(AO) under section 147 read with section 144 of the Act, on 16-05-2023, for the Assessment Year (AY) 2017-18.
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The main issue was the confirmation of an addition of Rs. 54.70 Lacs for cash deposits during the demonetization period. The CIT(A) upheld the addition, noting the assessee’s failure to respond despite several opportunities. The assessee appealed, seeking another chance to present their case, which was opposed by the Revenue counsel.
Read More: Rs. 42.72 Lacs Addition for Cash Deposits during Demonetization: ITAT Remands Case to AO
The two member bench comprising Manu Kumar Giri(Judicial Member) and Manoj Kumar Aggarwal(Accountant Member) recognizing the assessee’s failure to substantiate the cash deposits, accepted the AR’s request. To ensure natural justice, the ITAT granted another opportunity for the appellant to present their case, subject to a cost of Rs. 5,000/-.
The amount was to be deposited within 30 days with the Tamil Nadu State Legal Services Authority at the Madras High Court. The assessee had to provide proof of payment to the AO, who would then conduct a fresh assessment. The assessee was also directed to substantiate the case promptly.
Read More: Addition of ₹1.22 Crore for Cash Deposits During Demonetization: ITAT Upholds CIT(A)’s Deletion
In short, the appeal filed by the assessee was allowed for statistical purposes.
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