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Facts
The assessee filed his return of income for AY 2017-18, which was selected for limited scrutiny due to cash deposits during the demonetization period. The AO added Rs. 34,86,700/- to the assessee's income under Section 68 as unexplained cash credit, leading to an assessment order u/s 144.
Held
The Tribunal observed that the assessee had offered income from other sources, and the AO's addition was less than the offered amount. However, due to the lack of proper documentation and explanations from the assessee regarding the nature and source of cash deposits, the issue was remitted back to the AO for de novo assessment after providing the assessee with an opportunity to be heard.
Key Issues
Whether the cash deposits made during the demonetization period, which were offered as income from other sources, could be treated as unexplained cash credit under Section 68 and taxed at a higher rate under Section 115BBE. Whether the assessee was provided adequate opportunity to explain the source of deposits.
Sections Cited
250, 144, 143(2), 142(1), 68, 115BBE
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Income Tax Appellate Tribunal, KOLKATA ‘D’ BENCH, KOLKATA
Before: SHRI DUVVURU RL REDDY(KZ) & SHRI RAKESH MISHRA
order
: April 4th, 2025 ORDER
PER RAKESH MISHRA, ACCOUNTANT MEMBER:
This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)- NFAC, Delhi [hereinafter referred to as ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for AY 2017-18 dated 24.11.2023, which has been passed against the assessment order u/s 144 of the Act, dated 18.12.2019.