JAY KUMAR SONI,KORBA vs. ASSISTANT COMMISSIONER OF INCOME TAX, KORBA

The relevant facts as discernible from the findings of the Ld. CIT(Appeals)/NFAC are culled out as follows: “2. The grounds of appeal object to addition of Rs.2500000/- being cash deposited during demonetization period. There is no any submission/explanation regarding cash deposits as queried. Thus the compliance part is most unsatisfactory. Keeping in view of natural justice a one more and final opportunity was given by issuing show cause notice on 12.11.2019 fixing the case for furnishing information/reply by 14.11.2019 but the assessee has not offered any explanation. However, on 30.11.2019 assessee filed a chart of bank accounts where in SBI deposits shows NIL. The submission is not correct as the information available in AO's office clearly shows the deposit of Rs.2500000/- during demonetization period. The department has fully shifted on PAN based data and person is identified by his PAN only, whatever information made available by SBI the assessee has) deposited cash amounting to Rs.25 lakhs in bank a/c. No.32790010157 mentioning the PAN: ANOPS4514N. Thus PAN identified is holding by Shri Jay Kumar Accordingly the assessee was queried to explain the source of this deposit specially deposited during demonetization period. But, it appears that the assessee has decided not to furnish any explanation in this regard. It proves the cash deposited by assessee is out of his undisclosed income and therefore he has no explanation regarding source of deposits. As per information available on record total cash amounting to Rs.25 lakh was deposited in SBI (a/c no.3279D010157). In the explained facts, the AO was left with no-other alternative but to make an addition of Rs.25 lakh u/s.69A of Income Tax Act in the total income of the assessee. The addition of Rs.2500000/- is-confirmed.

It is clear from the aforesaid facts on record and findings of the first appellate authority that the assessee had filed bank statement of SBI wherein deposits shown is Rs.Nil, whereas, the department had received information in the office of the A.O made available by the SBI that the assessee had made cash deposits of Rs.25 lacs in his bank account No.32790010157, PAN No.ANOPS4514N. In this regard, there has been no enquiry conducted since the assessee was mostly non-compliant during the proceedings as to the statement of SBI which was available with the department regarding cash deposits of Rs.25 lacs and there is no enquiry conducted with regard to the assessee, perhaps due to his such non- compliance. At the same time, the assessee had filed before the department the bank statement from SBI showing deposit as Nil, therefore, before making additions this part needs to be ascertained as to whether at all there were any cash deposits made by the assessee. There is nothing emanating from the order of the Ld. CIT(Appeals)/NFAC that any enquiry was conducted by the Ld. CIT(Appeals)/NFAC as mandated u/s. 250(4) & (6) of the Income Tax Act, 1961. There has been no examination done by the Ld. CIT(Appeals)/NFAC before making addition though his powers are co-terminus with that of the A.O. That at the same time, given the facts that the assessee had filed statement of bank account of SBI wherein deposits are shown as “Nil” there emanates some doubt

As per the aforesaid terms, the grounds of appeal raised by the assessee stands allowed for statistical purposes.

In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in open court on 01st day of August, 2025.