What did the Tribunal hold?

The Tribunal found that the primary issue of unexplained cash deposits could not be decided at that juncture. Therefore, the matter was sent back to the Assessing Officer for further examination.

The assessee's appeal was against an ex parte assessment order. The CIT(A) held that the assessee remained non-responsive and cash deposits were unexplained, despite multiple notices.

What were the issues?

Whether the CIT(A) erred in upholding the addition for unexplained cash deposits without proper adjudication. The Tribunal's inability to decide the primary issue due to lack of clarity on the source of funds.

Smt. Sofiya Bilal Lakadia… vs ITO | ITAT Ahmedabad 2024

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

For Appellant: Shri Mohit Balani, AR

Hearing: 07/10/2024Pronounced: 07/10/2024

Asstt.Year : 2017-18 Smt.Sofiya Bilal Lakadia ITO, Ward-1(1) 553, Manekwadi Vs Ahmedabad,. Opp: Sir Pattani Road Shishuvihar Bhavnagar 364 001 Gujarat. PAN : ACYPL 3352 N (Applicant) (Responent) Assessee by : Shri Mohit Balani, AR Revenue by : Shri Ravindra, Sr.DR सुनवाई क� तारीख/Date of Hearing : 07/10/2024 घोषणा क� तारीख /Date of Pronouncement: 07/10/2024 आदेश आदेश/O R D E R आदेश आदेश This is assessee’s appeal against the order of the ld.Commissioner of Income Tax (Appeal), National Faceless Appeal Centre (NFAC), Delhi dated 10.05.2024 for the Asst.Year 2017-18 passed under section 250 of the Income Tax Act, 1961 (“the Act” for short).

The assessment order in the case was passed on 28.12.2019 ex parte under section 144 of the Act by the Assessing Officer. The ld.CIT(A) a para 5.2 held that the appellant remained non-responsive and cash deposits in the and bank accounts remained unexplained. Further, he recorded that six notices in the span more than three years have been issued by the ld.CIT(A). The ld.CIT(A) held that in ground no.3 the assessee has requested to delete the addition as per the peak credit without even clarifying the source of cash deposits. The Tribunal cannot decide the primary issue at this juncture.

In the fitness of the things, I send the matter back to the file of AO. It is believed that the assessee shall not miss the given opportunity and the Revenue is at liberty to initiate the proceedings in case of non-compliance of the notices by the assessee.

In the result, the appeal of the assessee is allowed for statistical purpose.

Dictated on the Open Court, typed and pronounced on 7th October, 2024.

Copy of this order be given to the assessee. The Registry is directed to dispatch as per procedure.

SMT. SOFIYA BILAL LAKADIA,BHAVNAGAR vs. THE INCOME TAX OFFICER, WARD-1(1), BHAVNAGAR

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What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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