Mohammed Moshin, resident of New Delhi, filed an appeal against the DCIT, Central Circle, Ghaziabad, for the assessment year 2016-17. This case centers around an addition of Rs. 11,00,000 deemed as unexplained cash under section 69A of the Income Tax Act, 1961.
The assessee’s appeal challenges the decision made by the Commissioner of Income Tax (Appeals) in Kanpur, which confirmed the assessing officer’s addition of unexplained cash to Moshin’s taxable income. This addition was based on cash seized during a search operation under section 132 of the IT Act.
The tribunal noted several procedural issues, including the rejection of additional evidence submitted under Rule 46A of the Income-tax Rules, 1962. The case was returned to the CIT(A) with instructions to provide a comprehensive rationale for the rejection of the evidence and to re-evaluate the additions if the evidence is accepted.
This case underscores the importance of adherence to procedural rules and the rights of taxpayers to a fair hearing. It highlights the complexities involved in dealing with additions for unexplained cash and the critical role of documentary evidence in appeal proceedings.
ITA 35/DEL/2019: Mohammed Moshin vs. DCIT – Appeal on Unexplained Cash Addition for AY 2016-17
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