This article delves into the tribunal hearing of Sunil Kumar from Panipat in ITA No.5083/DEL/2019, where he challenges the reassessment proceedings related to unexplained cash deposits during the assessment year 2010-11.
The case arises from a reassessment initiated by the Income Tax Officer, Ward-4, Panipat, after it was discovered that Sunil Kumar had deposited cash totaling Rs. 10,26,000 in his bank account without filing a tax return for the year. The reassessment was pursued under Section 69A of the Income Tax Act, which deals with unexplained money, etc., found credited in the taxpayer’s accounts.
Throughout the reassessment process, the income tax authorities noted non-compliance by the assessee, including failure to respond to various notices. This led to an ex-parte assessment, subsequently challenged by Sunil Kumar at the CIT(A), which upheld the reassessment. The matter escalated to the ITAT, where the need for proper examination of the source of cash deposits was emphasized.
The ITAT recognized procedural lapses and non-cooperation by the assessee but also noted the possibility of substantiating the source of deposits if given another chance. Thus, the tribunal remanded the case back to the AO with instructions to reassess the matter, allowing Sunil Kumar a final opportunity to clarify the nature and source of the deposits.
This case highlights the complexities involved in dealing with unexplained cash deposits under the Income Tax Act and the judicial recourse available to taxpayers. It serves as a significant reference for understanding the implications of non-compliance and the procedural necessities in reassessment cases.
Reassessment Challenge for Unexplained Cash Deposits: Sunil Kumar, AY 2010-11
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