Case Number: ITA 1668/DEL/2019
Appellant: Jayashree Nagar, Noida
Respondent: ITO Ward-1(5), Noida
Assessment Year: 2010-11
Case Filed On: 2019-02-28
Order Type: Final Tribunal Order
Date of Order: 2019-10-07
Pronounced On: 2019-10-07
The case of Jayashree Nagar vs ITO Ward-1(5), Noida (ITA 1668/DEL/2019) revolves around the allegations of unexplained cash deposits amounting to Rs. 14.05 lakhs in the appellant’s bank account. Filed on 28th February 2019, this case pertains to the assessment year 2010-11 and was adjudicated by the Income Tax Appellate Tribunal (ITAT) in New Delhi. The final tribunal order was issued on 7th October 2019, with the judgment pronounced on the same day.
Jayashree Nagar, residing in Greater Noida, filed her return of income for the assessment year 2010-11. The issue arose when the Assessing Officer (AO) discovered that Rs. 14.05 lakhs had been deposited in her savings account with the Bank of Baroda, Noida, based on Non-PAN AIR information. A letter was issued seeking an explanation for the source of these deposits. In the absence of a satisfactory response, the AO proceeded ex parte and added the amount of Rs. 14.05 lakhs to her income under Section 144 of the Income Tax Act, 1961, on 27th October 2017.
Aggrieved by the addition, Jayashree Nagar appealed to the Commissioner of Income Tax (Appeals) [CIT(A)], Noida. She contended that the AO had ignored the return filed under Section 139(1) of the Act. Despite presenting documentary evidence to explain the source of the cash deposits, the CIT(A) upheld the AO’s addition, prompting the appellant to approach the ITAT.
The ITAT, led by Shri N.K. Billaiya, Accountant Member, examined the appeal on 7th October 2019. The tribunal noted that the assessment had been framed ex parte, and the CIT(A)’s order lacked any reference to the evidence provided by Jayashree Nagar regarding the source of the cash deposits. The tribunal found the CIT(A)’s order to be inadequate for adjudication as it contained extraneous considerations and failed to address the core issue.
The tribunal decided to restore the issue to the file of the Assessing Officer for a fresh examination. Jayashree Nagar was directed to resubmit all evidence explaining the source of the cash deposits, and the AO was instructed to reconsider the issue after giving her a reasonable opportunity to be heard. The tribunal’s final judgment stated:
The appeal of the assessee in ITA No. 1668/DEL/2019 is treated as allowed for statistical purposes.
The order is pronounced in the open court on 07.10.2019.
-Sd/- (N.K. BILLAIYA) ACCOUNTANT MEMBER
This case reflects common procedural issues where ex parte assessments and lack of detailed appellate examination can lead to the need for reassessment. Similar cases often highlight the necessity for thorough documentation and the importance of presenting a clear defense during initial proceedings to avoid prolonged litigation.
Jayashree Nagar vs ITO Ward-1(5), Noida (ITA 1668/DEL/2019): Dispute Over Unexplained Cash Deposits
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