CHOLENAHALLI SHIVE GOWDA SHARADA,BENGALURU vs. INCOME TAX OFFICER, BENGALURU

This is an appeal filed by the Assessee against the order dated 19/11/2024 impugned herein passed by the Ld. Addl./JCIT(A)-7, Mumbai (in short ‘Ld. Commissioner’) u/s 250 of the Income Tax Act 1961 (in short ‘Act’) for the assessment year 2017-18.

In response to said show cause notice, the Assessee filed her written submissions, which were not found to be satisfactory. Therefore, the AO completed the assessment u/s.144 of the Act, inter alia, making addition of Rs.9,547,335/- u/s.69A of the Act.

On appeal, the ld. Commissioner vide impugned order affirmed the assessment order on the ground that before him, no satisfactory explanation with supporting documentary evidence was given by the Assessee in regard to cash deposit of Rs.9,00,000/-.

Thus, the Assessee being aggrieved with the impugned order is in appeal before the Tribunal. Before us, ld. counsel for the Assessee has submitted that the ld. Commissioner has affirmed the assessment order on the ground of non-submission of documentary evidence in support of cash deposit. Whereas it was brought to knowledge of the Ld. commissioner that though cash of Rs.9,00,000/- belonged to the husband of the Assessee but somehow said amount was deposited in . the Assessee’s account. if one more opportunity is given, the Assessee will explain the transaction with documentary evidence that cash actually belongs to the husband of the Assessee.

On the contrary, ld. CIT DR opposed the contention of ld AR of the Assessee.

Having heard the rival submissions and perusing the materials available on record, we observe that the main contention of the Assessee is that the cash was actually belonged to her husband, as sale proceeds of agricultural land. The Ld. Commissioner has doubted the claim of the Assessee, as no sale deed was produced in support of such claim that the cash was received out of sale of agricultural land. Before us, ld. counsel for the Assessee has requested that if the matter is restored to the file of the AO, the Assessee will furnish all the required documents in support of cash deposit belonging to the Assessee’s husband.

We also observe that the assessment in the instant case has been passed u/s.144 of the Act due to non-compliance by the Assessee, which goes to show that even otherwise the issue remained to be adjudicated in its right perspective and proper manner by the AO as well.

Therefore, considering peculiar facts and circumstances in totality for the just and proper decision of the case, fair play, equitable relief and substantial justice, we are inclined to restore the issues involved in this case to the file of the Assessing Officer for fresh adjudication after affording reasonable opportunity of hearing to the Assessee.

The Assessee is also directed to cooperate in the set aside proceedings by filing the required details and documentary evidence in support of her claim, failing which, the AO would be at liberty to pass reassessment order as per law and without showing any leniency.

Thus, in the aforesaid terms, the case is remanded to the file of the JAO for decision afresh accordingly.

In the result, the appeal of the Assessee is allowed for statistical purposes. Order pronounced in court on 11th day of August, 2025