The Income Tax Appellate Tribunal Bangalore Ordered Reassessment for Tax Case Involving Unexplained Cash Deposits.
Facts
The AO issued notice u/s. 142(1) to the assessee for filing return of income, but the assessee did not file the return. On the basis of information and data gathered during online verification under ‘Operation Clean Money’, the AO noted that the assessee has deposited demonetized notes of Rs.10,08,000 in her SB and Current account at RBL Bank, Tirupati.
The assessee further issued various notices and letters u/s. 142(1) to the assessee which was not complied.
Since there was no return filed or proper explanation for the source of deposit of old notes, the AO completed the assessment proceedings as best judgment assessment u/s. 144 of Act. The AO u/s. 133(6) obtained bank statements/details of the assessee from the Bank during the FY 2016-17 and cash deposits during the demonetized period from 09.11.2016 to 30.12.2016.
The AO brought the cash deposit of old currency notes of Rs.500 & Rs.1,000 amounting to Rs.10,08,000 to tax as unexplained money u/s 69A and calculated income tax u/.s 115BBE of the Act.
Decision
The bench of Laxmi Prasad Sahu, Accountant Member noted that the AO has passed order u/s. 144 of the Act since the assessee did not avail the opportunities and comply with the notices/letters issued by the AO. The assessee also did not furnish documents or submissions before the CIT(Appeals) or appeared before the Tribunal at the time of hearing to substantiate her case.
The Tribunal viewed that one more opportunity is to be provided to the assessee to represent its case. It remitted the matter to the AO for fresh consideration and decision in accordance with law, after giving reasonable opportunity of being heard to the assessee.
The bench directed the assessee to produce all the relevant documents in support of its claim and avoid seeking unnecessary adjournment for early disposal of the case and further directed to provide correct address/email id/ telephone numbers for communication from the Income Tax Department.
Case title: Smt. Vani Kamineni v/s The Income Tax Officer
Citation: ITA No. 404/Bang/2023
