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Facts
The Assessing Officer made best judgment assessments under Section 147 read with Section 144, assessing unexplained bank deposits of Rs. 347.84 Lacs under Section 69A for AYs 2014-15 and 2015-16. The first appellate authority confirmed the additions as the assessee failed to provide cogent evidence for the deposits. Aggrieved, the assessee filed further appeals, requesting another opportunity to substantiate the sources of these cash deposits.
Held
Upholding the principles of natural justice, the Tribunal granted the assessee's request for a fresh opportunity. It directed the Assessing Officer to conduct a de novo assessment for both assessment years. The assessee is now required to plead and prove its case regarding the source of deposits forthwith.
Key Issues
Whether the assessee provided sufficient evidence to substantiate the source of cash deposits in bank accounts and if a fresh opportunity for substantiation should be granted.
Sections Cited
147, 144, 69A
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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