ITAT Remands Case After Assessee Submits Cash Summaries, Audit Report, and Valuation Documents for Reconsideration [Read Order]

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) has remanded a case back to the Assessing Officer (AO) for fresh adjudication after the assessee submitted additional documents, including cash summaries, audited accounts, and a valuer’s report, to substantiate his claims regarding unexplained cash deposits during the demonetization period.

The assessee, Tanveer Alam, had appealed against the order passed by the Commissioner of Income Tax (Appeals) [CIT(A)], for the Assessment Year 2017-18.

Coming to the facts of the case, the AO scrutinized the assessee’s return, which declared an income of Rs. 16.14 lakhs, and raised concerns over cash deposits made during demonetization and exemptions claimed on capital gains. Even after multiple notices under Section 143(2) of the Income Tax Act, 1961, the assessee failed to provide adequate documentation, leading the AO to make additions under Section 68 for unexplained cash credits. In this case, the AO had assessed the income at Rs. 80.94 lakhs, noting non-compliance and lack of evidence from the assessee.

The Commissioner of Income Tax (Appeals) upheld the AO’s order and dismissed the assessee’s appeal due to insufficient evidence.

The bench noted that the assessee had only made partial compliance. The tribunal observed that the main crux of the lower authorities' order is that the assessee failed to furnish sufficient documentary evidence to support his case.

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During the proceedings before the ITAT, the assessee had filed a monthly cash summary for F.Y. 2015-16 and 2016-17, an audited statement of accounts for F.Y. 2016-17, a Registered Valuer’s report dated 27.06.2011 for the valuation of property, and accounts of Calcutta

skin suppliers & Md. Samiullah S.B. & Co. for F.Y. 2009-10.

The tribunal remitted the matter back to the file of the assessing officer for fresh adjudication by noting the additional documents produced by the assessee. The bench restored the appeal and directed the AO to conduct a fresh adjudication after giving an opportunity to the assessee to place all the documentary evidence. In conclusion, the order passed by the lower authorities was set aside by the ITAT.

The ITAT, comprising Pradip Kumar Chaoubey (Judicial Member) and Sanjay Awasthi (Accountant Member), allowed the assessee’s appeal for statistical purposes.

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