This article delves into the case of ITA 1475/DEL/2021, where Bhoop Kaur Anand, a non-resident Indian, appealed against the ACIT, Circle International Taxation-1(1)(1), New Delhi. The appeal concerns the assessment year 2017-18, focusing on the addition made by the AO for unexplained cash deposits. The case was heard and decided by the Delhi Bench ‘D’ of the Income Tax Appellate Tribunal (ITAT) on March 10, 2023.
Bhoop Kaur Anand, holding a British passport, filed her income tax return for the assessment year 2017-18. The assessment was selected under section 143(3) for verification under the “operation clean money” initiative. The AO noted cash deposits amounting to Rs. 12,49,000 in her bank account, which were treated as unexplained money and added to her income under section 69A of the Income Tax Act, 1961.
The appellant raised several grounds of appeal:
The appellant’s representatives, Sh. Sachit Jain and Sh. Dhani Ram Sharma, argued that the appellant’s non-residency and short stay in India resulted in her inability to comply with the assessment proceedings. They requested a remand for fresh adjudication, ensuring due compliance.
Sh. Sanjay Kumar, representing the Revenue, supported the findings of the lower authorities and argued against the appellant’s claims.
The Tribunal, comprising Judicial Member Sh. Kul Bharat and Accountant Member Dr. B. R. R. Kumar, reviewed the facts and arguments. They observed that despite several opportunities, the appellant did not attend the assessment or appellate proceedings. Given the appellant’s non-residency, the Tribunal found it appropriate to remand the case for fresh adjudication to ensure compliance and justice.
The Tribunal allowed the appeal for statistical purposes, remanding the case back to the CIT(A) for a fresh decision. They directed the CIT(A) to provide the appellant with a fair opportunity to respond to the notices and present her case. The Tribunal also allowed the CIT(A) to invoke relevant provisions of the Income Tax Act in case of non-compliance by the appellant.
This case highlights the importance of ensuring due process and fair opportunity in tax proceedings, especially for non-residents. The Tribunal’s decision to remand the case underscores the judicial system’s commitment to natural justice and fair play.
Order Pronouncement
The order was pronounced in the open court on March 10, 2023, by the Tribunal members.
(Kul Bharat)
Judicial Member
(Dr. B. R. R. Kumar)
Accountant Member
Dated: March 10, 2023
Copy forwarded to:
Bhoop Kaur Anand vs ACIT: Unexplained Cash Deposit – ITA 1475/DEL/2021
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