YASI BYALING NALO,ITANAGAR vs. ITO, WARD NORTH LAKHIMPUR, NORTH LAKHIMPUR

Briefly stated the facts of the case are that as per the information available in the insight portal of the income tax department and data verified through e-filing portal, the assessee has not filed return of income for the FY 2019-20 in spite of substantial amount of cash deposit in the bank account maintained with State Bank of India of Rs. 31,90,150/-. Thereafter, following the due procedure for making assessment u/s 147 of the Act notice u/s 148 of the Act was issued to the assessee and time was granted to file return of income of 30 days but there was no any response from the assessee side. Further, other statutory notices were issued to the assessee to explain the source of cash deposit before completion of assessment u/s 144, the AO granted opportunity to the assessee but there was no any response. Accordingly, the entire cash deposits were treated as income from other source of Rs. 31,90,150/- and AO passed the order on 27.01.2025 u/s 147 r.w.s. 144 r.w.s. 144B of the Act.

Aggrieved from the order of AO, the assessee filed appeal before the Ld. CIT(A) on 19.04.2025. The Ld. CIT(A) also provided various chances to the assessee on different dates, but there was no any response from the assessee side. Accordingly, the Ld. CIT(A) confirmed the addition

Aggrieved from the order of Ld. CIT(A), the assessee filed appeal before the ITAT. The Ld. Counsel for the assessee submitted that the assessee had no knowledge about of income tax proceedings as completed by the AO. He only came to know that when the department asked for payment of demand and he further submitted that the notice issued by the Ld. CIT(A) could not be seen otherwise there is no intention of the assessee to disrespect of the notices issued by the revenue authorities. He requested and undertook that one more chance may be given to the assessee and assessee will be able to substantiate the source of cash deposit which legitimate documents.

On the other hand, the Ld. DR relied on the order of lower authorities.

Considering the rival submissions and perusing the entire materials available on record and order of authorities below. The case of the assessee was competed u/s 147 r.w.s. 144 r.w.s. 144B of the Act and income was assessed at Rs. 31,90,150/- as income from other sources for want of explanation from the assessee side regarding source of cash deposit. Both the authorities below provide various chances to the assessee to explain the source of cash deposit but there was no response.

In the result, appeal of the assessee is partly allowed for statistical purposes.