Dispute Over ₹39.91 Lakh Time Deposit with Bank of Baroda: ITAT Remands Matter to AO for Readjudication [Read Order]

Shiv Prasad Ram, appellant-assessee, through the counsel submitted that he had retired from SAIL on 30/06/2014 and received ₹27,79,943/- towards retirement benefits, including provident fund, leave encashment, and other dues.

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The AO had reopened the assessment for non-filing of return based on information that he had made a time deposit of ₹39,91,000/- with Bank of Baroda, Ranchi, and completed the assessment ex parte, adding ₹62,95,535/-.

The assessee clarified that he did not hold any such time deposit and requested an opportunity to present the details before the AO.

The Departmental counsel did not raise any serious objections.

The two member bench comprising George Mathan (Judicial Member) and Ratnesh Nandan Sahay (Accountant Member ) examined the submissions and observed that the assessment order was passed ex parte based on information regarding a time deposit of ₹39,91,000/- in the Bank of Baroda, Ranchi, allegedly in the name of the assessee. The assessee denied having such a deposit.

The appellate tribunal noted that the Commissioner of Income Tax (Appeals)[ CIT(A) ] had called for a remand report, which revealed that the Bank of Baroda had not responded to the notice issued by the AO.

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Considering these facts, the tribunal set aside the assessment and restored the matter to the AO for readjudication after providing the assessee an adequate opportunity of being heard. It further directed that, if any tax demand arose, recovery could be made from the alleged time deposit of ₹39,91,000/- with the Bank of Baroda, Ranchi.

The appeal was partly allowed for statistical purposes.

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