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Facts
The assessee filed appeals for AY 2014-15 and 2015-16 against assessments made under sections 147 r.w.s. 144, where bank deposits of Rs. 347.84 Lacs were assessed under section 69A. The first appeal confirmed the assessment due to the assessee's failure to substantiate the deposits with cogent evidence. The assessee sought another opportunity to present evidence before lower authorities.
Held
The Tribunal, applying the principles of natural justice, accepted the assessee's prayer and directed the Assessing Officer to conduct a de novo assessment for both assessment years. The assessee was instructed to plead and prove their case before the lower authorities forthwith.
Key Issues
Whether the assessee could substantiate the sources of cash deposits under Section 69A, and if a de novo assessment was warranted based on principles of natural justice to provide a fresh opportunity for evidence.
Sections Cited
147, 144, 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘DB’, AMRITSAR BENCH, AMRITSAR
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI UDAYAN DAS GUPTA, JM
O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeals by assessee for Assessment Years (AY) 2014-15 & 2015-16 have identical facts. The registry has noted delay of 35 days in the appeals which stand condoned. The appeal for AY 2014-15 arises out of an order of Ld Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 25-11-2024 in the matter of an assessment framed by Ld. AO on best judgment basis u/s 147 r.w.s. 144 of the Act on 11-05-2023. The Ld. AO assessed bank deposits of Rs.347.84 Lacs u/s 69A. During first appeal, the assessee could not substantiate the deposits with cogent evidences and accordingly, the assessment was confirmed. Similar are the facts in AY 2015-16. Aggrieved, the assessee is in further appeals before us. The Ld. AR has pleaded for another opportunity of hearing before lower authorities on the ground that the assessee is able to substantiate the sources of cash deposits. The same has been opposed by Ld. CIT-DR.
Keeping in mind the principles of natural justice, we accept the prayer of Ld. AR and accordingly, direct Ld. AO to make de novo assessment for both the years with a direction to the assessee to plead and prove its case forthwith.
Both the appeals stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 18-08-2025 आदेश की "ितिलिप अ"ेिषत /Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. ""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF