Akheto Yepthomi Vs ITO (ITAT Guwahati)
Cash Deposits u/s 69A Remanded for Fresh Verification; Penalty u/s 271B Sustained Despite Section 10(26) Exemption
The Guwahati Bench of the ITAT dealt with two appeals arising from the same assessment year—one challenging addition under section 69A and the other contesting penalty under section 271B. The assessee, a Scheduled Tribe individual claiming exemption under section 10(26), had deposited substantial cash in multiple bank accounts during AY 2021-22.
The Assessing Officer treated the entire cash deposits as unexplained due to non-maintenance of books and lack of satisfactory explanation. On appeal, the NFAC partly granted relief by deleting a major portion of the addition but sustained ₹87.05 lakh as unexplained. Before the ITAT, the assessee contended that part of the cash belonged to a private limited company where he was a director and part represented past savings—facts not properly examined earlier.
Considering the interests of justice, the ITAT remanded the issue of ₹87.05 lakh back to the AO for fresh examination, directing the assessee to substantiate the source of cash with cogent documentary evidence. The appeal on addition was thus allowed for statistical purposes. However, the Tribunal upheld the penalty under section 271B, holding that exemption of income under section 10(26) does not absolve the assessee from statutory obligations of maintaining books under section 44AA and getting accounts audited under section 44AB once turnover thresholds are crossed. Accordingly, the penalty was confirmed
FULL TEXT OF THE ORDER OF ITAT GUWAHATI
