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Facts
The assessee's case was reopened for AY 2010-11 to verify cash deposits of Rs. 36,24,249 in two bank accounts. The assessee was non-compliant, leading the AO to add the deposits as income from undisclosed sources. The CIT(A) confirmed the addition but erroneously referred to facts from AY 2011-12.
Held
The tribunal noted that the CIT(A) incorrectly considered facts pertaining to AY 2011-12 instead of AY 2010-11. Given this error and the assessee's willingness to substantiate the cash deposits, the tribunal set aside the impugned order and directed the AO to conduct a de novo assessment.
Key Issues
The primary issue was the source of unexplained cash deposits. A procedural issue arose from the CIT(A)'s error in considering facts from an incorrect assessment year.
Sections Cited
Section 144, Section 147
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Income Tax Appellate Tribunal, “DB” BENCH, AMRITSAR
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & SHRI UDAYAN DAS GUPTA, JM
(निर्धारण वर्ा / Assessment Year: 2010-11) Shri Imtiyaz Ahmad Kabiri ITO बिधम/ C/o JK Sweets Khanqah Moulla Near Govt. Silk Factory Vs. J & K – 190002 Srinagar - 190008 स्थायीलेखासं./जीआइआरसं./PAN/GIR No. AUIPK-5708-P (अपीलाथी/Appellant) : (प्रत्यथी / Respondent) अपीलाथीकीओरसे/ Appellant by : Shri P.N.Arora (Advocate) – Ld. AR प्रत्यथीकीओरसे/Respondent by : Sh. Charan Dass (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 20-01-2026 घोषणाकीतारीख /Date of Pronouncement 20-01-2026 : आदेश / O R D E R
Aforesaid appeal by assessee for Assessment Year (AY) 2010-11 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC dated 08-11-2024 in the matter of an assessment framed by Ld. AO u/s 144 / 147 on 24-12-2017. Having heard rival submissions and upon perusal of case records, the appeal is disposed- off as under.
The case of the assessee was reopened to verify source of cash deposits of Rs.36,24,249/- in two bank accounts. The assessee