Gaurav Joshi Vs ITO (ITAT Amritsar)
The assessee filed an appeal before the Income Tax Appellate Tribunal (ITAT), Amritsar, challenging the order of the Commissioner of Income Tax (Appeals), Jalandhar. The principal dispute related to the validity of reassessment proceedings initiated under Sections 147 and 148 of the Income Tax Act, 1961, as well as an addition made under Section 69 on account of deposits in bank accounts.
The assessee had filed a return of income on 08.08.2017 declaring income of Rs. 49,320. The return was filed in response to a notice issued under Section 148 on 30.03.2017. The Assessing Officer (AO) recorded reasons stating that, as per information available on record, the assessee had deposited cash of Rs. 1,39,28,640 during Financial Year 2009-10 relevant to Assessment Year 2010-11. Since no return had been filed for that year and there was no response to a letter seeking an explanation regarding the source of cash deposits, the AO formed a belief that income chargeable to tax had escaped assessment and issued a notice under Section 148.
Subsequently, the AO completed the assessment and determined the income at Rs. 6,71,915 after making an addition. Aggrieved by the assessment order, the assessee appealed before the CIT(A), challenging both the jurisdiction of the AO and the addition made. The CIT(A) rejected the jurisdictional objection on the ground that it had not been raised before the AO and also sustained the addition, holding that the AO had duly examined the explanation regarding bank deposits.
