The Income Tax Appellate Tribunal (ITAT), Ahmedabad bench cancelled the confirmation of additional amount without verifying the repayment and submission of the assessee in case of Cash deposit.
Assessee Rajeshkumar Baldevbhai Patel is engaged in agricultural activities and had not filed the Returns of Income. The Assessing Officer (AO) found that assessee has made cash deposits of Forty Lakh Fifty Thousand and Five Hundred Rupees in his savings bank account with Bank of India. After that AO issued a letter to assessee for verifying the transaction of the assessee’s savings account. But the assessee did not respond to that letter.
Thereafter the AO issued notice under Section 148 of the Income Tax Act to reopen the assessment and collected the bank details of the assessee and made order without considering the assessee’s submission. Against the order, the assessee filed an appeal before the ITAT.
The observation of VivekChavda, A.R. for assessee was that, Assessee provided all the documents required by the Assessing Officer for verifying the creditor’s loan transactions on his account. But the AO partially accepted loan transactions and then added the remainder as unexplained income of the assessee.
V.K. Singh, for Revenue, strongly supported the decision of the CIT (A) and argued that the additions confirmed by the CIT (A) did not require any interference.
The Division Bench of Annapurna Gupta, Accountant Member and T.R. Senthil Kumar, Judicial Member allowed the appeal filed by the assessee, held that addition made by the Assessing Officer not correct and deleted the addition confirmed by the CIT (A).
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