ITAT Agra Judgments — December 2023

The Tribunal upheld the addition of Rs. 38,99,000 as unexplained money and Rs. 1,600 as interest income. It found that the assessee failed to discharge the onus of proving the nature and source of the cash deposits.

The Tribunal noted that the assessee provided an affidavit from his brother stating the deposits were his and the assessee had no connection to them. In the interest of justice, the Tribunal decided to restore the file to the AO for verification of this additional evidence.

The CIT(A) correctly applied Section 50C as the assessee did not raise objections before the AO regarding the valuation or request a reference to the Valuation Officer. The assessee also failed to provide evidence to dispute the valuation.

The Tribunal upheld the PCIT's order, finding it reasonable and without infirmity. The Tribunal agreed that the assessment order was erroneous and prejudicial to the revenue's interest regarding the unexplained capital.