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Facts
The assessee's appeal against an addition of Rs. 5,65,14,032/- towards alleged unexplained cash credits, including cash deposits made during demonetization, was dismissed by the NFAC for non-prosecution. The assessee contended that he was not provided adequate opportunity and that the deposits were out of cash sales from his business of reselling ginger.
Held
The Tribunal found that the NFAC dismissed the appeal without hearing the assessee. Considering the interest of justice, the Tribunal restored the issue to the NFAC, granting one final opportunity to the assessee to substantiate his claims and directing the assessee to cooperate with the Assessing Officer.
Key Issues
Whether the NFAC erred in dismissing the appeal for non-prosecution without providing adequate opportunity, and whether the addition of cash deposits as unexplained credits was justified given the assessee's business of cash sales.
Sections Cited
143(3), 68, 115BBE, 154, 142(1), 143(1)
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Income Tax Appellate Tribunal, DELHI BENCH “G”, DELHI
before the AO and co-operate in the proceedings. The grounds raised by the assessee are accordingly allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court 19.03.2026.