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Facts
The Assessee challenged an order of the National Faceless Appeal Center for AY 2017-18. The Assessing Officer had treated a deposit of Rs. 9,98,100/-, made during the demonetization period, as unexplained income. The Assessee provided certificates showing deposits of Rs. 54,000/- and Rs. 1,37,500/- in old currency notes.
Held
The Tribunal considered the facts and circumstances, acknowledging the importance of the documents submitted by the Assessee for proper adjudication. The Court decided to remand the case back to the Assessing Officer for a fresh decision.
Key Issues
Whether the deposits made by the Assessee during the demonetization period were correctly treated as unexplained income.
Sections Cited
250 of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, NAGPUR BENCH “SMC”, NAGPUR
Before: SHRI NARENDER KUMAR CHOUDHRY
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Assessee against the order dated 24.12.2024, impugned herein, passed by the National Faceless Appeal Center (NFAC)/Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2017-18.
In the instant case, the Assessee during the assessment year under consideration had deposited Rs.9,98,100/- during the period from 09.11.2016 to 30.12.2016 which was treated as unexplained income by the Assessing Officer (AO) from other sources and consequently added in the income of the Assessee. The Assessee by producing a certificate dated 10.01.2025 has demonstrated the fact that he has deposited Rs. 54,000/- and Rs.1,37,500/- in total Rs.1,91,500/- in the old denominations/SBN notes but otherwise all the amounts have been deposited in new currency notes as it clearly appears from the bank certificate issued by Vidharbha Konkan Gramin Bank as. The Assessee has also filed certificate issued by Akola Urban Co-operative Bank dated 15.01.2025 giving detailis of SBN notes deposited during demonetisation period. Further, the Assessee has also submitted a certificate dated 15.01.2025 issued by Akola Urban Cooperative Bank showing IFSC code is connected with the Yes Bank.
This Court has given thoughtful considerations to the peculiar facts and circumstances of the case. Admittedly the aforesaid documents are essential for proper adjudication of the issue involved and thus for just and proper decision of the case and substantial justice, this Court is remanding the case to the file of the AO for decision afresh and by considering the said documents filed by the Assessee and/or any other documents to be produced by the Assessee. Suffice to say the AO shall afford reasonable opportunity of being heard to the Assessee.
The Assessee is also directed to file the relevant submissions and documents as well as the documents filed before this Court. Thus, the case is accordingly remanded to the file of the AO for decision afresh in the aforesaid terms.
In the result, the Assessee’s appeal is allowed for statistical purposes.
Order is pronounced in the open court on 27.06.2025 .