Case Number: ITA 1107/DEL/2020
Appellant: Vineet Bhardwaj, Faridabad
Respondent: ITO Ward – 2(5), Faridabad
Assessment Year: 2011-12
Result: Final Tribunal Order
Case Filed On: 2020-03-18
Date of Order: 2022-08-18
Pronounced On: 2022-08-18
This case pertains to the unexplained cash deposits for the assessment year 2011-12 involving Vineet Bhardwaj, Faridabad, and ITO Ward – 2(5), Faridabad. The primary issue in this appeal was the addition of Rs. 15,15,500/- as unexplained cash deposits in the bank account of the appellant.
Vineet Bhardwaj, Faridabad, filed an appeal against the order dated 29/01/2020 passed by the Commissioner of Income Tax (Appeals), Faridabad. The CIT(A) confirmed the addition of Rs. 15,15,500/- made by the Assessing Officer (AO) as unexplained cash deposits. The appellant claimed that the cash deposits were loans from relatives who were agriculturists, but the AO and CIT(A) found the explanation unsatisfactory.
The AO reopened the case under Section 148 of the Income Tax Act, 1961, after receiving information about the cash deposits amounting to Rs. 15,15,500/- in the appellant’s bank account. The AO noted that the declared income of Rs. 2,17,110/- did not justify the cash deposits. The AO added the amount as unexplained income due to the appellant’s failure to provide sufficient evidence supporting the source of the cash.
The CIT(A) dismissed the appeal, upholding the AO’s addition of Rs. 15,15,500/- as unexplained cash deposits. The CIT(A) noted that the appellant failed to substantiate the creditworthiness of the persons from whom the loans were claimed to have been received, despite submitting affidavits from the alleged lenders.
The ITAT analyzed the submissions and the circumstances surrounding the addition of unexplained cash deposits. The key points discussed were:
Appellant: None
Department: Shri Om Parkash, Sr.DR
The appellant did not appear for the hearing. The case was taken up ex-parte.
The Sr.DR supported the orders of the authorities below, arguing that the appellant failed to explain the source of the cash deposits in his bank account.
The Tribunal analyzed the submissions and found that the AO and CIT(A) did not conduct adequate inquiries to verify the affidavits submitted by the appellant. The key findings were:
Therefore, the Tribunal set aside the impugned order and restored the assessment to the file of the AO for fresh assessment after conducting the requisite inquiries to verify the contents of the affidavits filed by the appellant.
The ITAT concluded that the unexplained cash deposits for the assessment year 2011-12 involving Vineet Bhardwaj, Faridabad, and ITO Ward – 2(5), Faridabad, required further inquiry. The appeal was allowed for statistical purposes, and the matter was remanded to the AO for fresh assessment.
Order pronounced in the open court on 18th August 2022 by Kul Bharat, Judicial Member.
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform