Operation Clean Money Revealed ₹12.4L Demonetisation Cash Deposit: ITAT Remands Income Tax Order over Improper Notice [Read Order]
ITAT noted that the department produced no proof that the notice sent through speed post was ever served upon the assessee
![Operation Clean Money Revealed ₹12.4L Demonetisation Cash Deposit: ITAT Remands Income Tax Order over Improper Notice [Read Order]](https://images.taxscan.in/h-upload/2026/05/08/2135927-site-img8-2jpg.webp "Operation Clean Money Revealed ₹12.4L Demonetisation Cash Deposit: ITAT Remands Income Tax Order over Improper Notice [Read Order]")
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) recently remanded an income tax assessment order regarding demonetisation period cash deposit of ₹12.44 Lakhs revealed through ‘Operation Clean Money’. The Tribunal noted that the department had not provided the assessee a proper opportunity for hearing and adequate service of notice before the addition was...
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) recently remanded an income tax assessment order regarding demonetisation period cash deposit of ₹12.44 Lakhs revealed through ‘Operation Clean Money’. The Tribunal noted that the department had not provided the assessee a proper opportunity for hearing and adequate service of notice before the addition was confirmed.
The income tax department, during online verification detected that the assessee, Lokesh Mittal had deposited cash of ₹12.44 lakh in his bank account during the demonetisation period between November and December 2016.
Suspicion further rose when it was noted that the assessee had not filed his Income Tax Return (ITR) for Assessment Year 2017-18, despite having filed the relevant ITRs for the assessment years preceding and succeeding A.Y. 2017-18.
A total of 5 notices were claimed to have been issued by the department, however, receiving no compliance from the assessee, the department made an addition of ₹85.54 Lakh under section 69A of the Act, along with penalty proceedings under section 271AAC and 271F.
An appeal before the Commissioner of Income Taxes (Appeals) ( CIT(A) ) was dismissed ex-parte stating that the assessee allegedly failed to respond to the notice of hearing on four
dates.
Before the ITAT, Raj Kumar Chauhan, Judicial Member and Brajesh Kumar Singh, Accountant Member noted that the assessee had not filed any responses to the multiple notices issued, but it was also noted that nothing on record affirmed whether the said notices were served upon or received by the assessee.
The Bench observed that the no effective opportunity of hearing was granted by the CIT(A), and further that some one of the notices were left unserved when sent by speed post.
Accordingly, the ITAT remitted the issue back to the AO for the limited purpose of hearing the assessee with regard to the addition of ₹8,16,880 sustained in the impugned order passed by the ld. CIT(A).
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
