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Facts
The assessee, Balbir Singh, challenged an addition of Rs. 16,85,000 made by the Assessing Officer for cash deposited in a bank account for Assessment Year 2012-13, which was treated as unexplained money under section 69A of the Act. The assessment was reopened based on AIR information, and both the AO and CIT(A) confirmed the addition due to the assessee's non-compliance with notices.
Held
Considering the assessee is a 75-year-old senior person who struggled to arrange tax papers, and with the consent of the Revenue, the Tribunal remitted the issue back to the Assessing Officer. The AO is directed to re-adjudicate the matter afresh after providing the assessee a proper opportunity of being heard.
Key Issues
Whether the addition of Rs. 16,85,000 for cash deposits as unexplained money under section 69A was justified given the assessee's non-compliance, and if the assessment was validly reopened based on AIR information.
Sections Cited
69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ : NEW DELHI
Before: SHRI SHAMIM YAHYA
This appeal by the assessee is directed against the orders of the ld. CIT (Appeals)/National Faceless Appeal Centre (NFAC) dated 20.09.2023 for the assessment year 2012-13. 2. Grounds of appeal taken by the assessee read as under :- “1. The ld. Assessing Officer has erred in law and facts while reopening the assessment : a. Merely on the basis of AIR information b. Taking cash deposited in the bank to be escaped income.
2. The ld. AO has erred in law and facts while treating the cash deposited in the bank account to be unexplained money u/s 69A of the Act.”
3. In this case, in an ex-parte order, Assessing Officer made addition of Rs.16,85,000/- being cash deposited in the bank. AO noted that despite several notices, assessee had not made any compliance.
4. Upon assessee’s appeal, ld. CIT (A) also noted that assessee was given several notices but he has not complied with. Ld. CIT (A) proceeded to confirm the order of the AO. 5. Against his order, assessee is in appeal before the ITAT. I have heard both the parties and perused the records. 6. Ld. Counsel for the assessee prayed that assessee is a senior person of 75 years of age and he was not able to systematically arrange his tax papers. Hence, he prayed that one more opportunity may be granted to the assessee before the AO to canvass the appeal. Ld. Counsel for the assessee undertook that he will be appearing to pursue the appeal before the AO. 7. Ld. DR for the Revenue did not have any objection to this proposition. 8. Accordingly, in the interest of justice, the issue is remitted to the file of AO. AO shall adjudicate the issue afresh after providing an opportunity of being heard to the assessee. 9. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 9th day of April, 2024.