Imran Pasha Vs ITO (ITAT Bangalore)
Bangalore ITAT Quashes ₹2.61 Crore Addition; No Addition Possible Without Even Identifying the Bank Account
The Bangalore ITAT deleted an addition of ₹2.61 crore made under Sections 147/144, holding that the Revenue cannot sustain an addition for alleged cash deposits when it is unable to even establish which bank account contained the deposits or furnish the underlying information on which the reassessment was initiated. The Tribunal observed that the entire addition rested on vague information unsupported by any tangible material.
The assessee, a small businessman engaged in car washing and sale of car accessories, was alleged to have deposited ₹1.51 crore in bank accounts and ₹1.09 crore with banking companies, resulting in a total addition of ₹2.61 crore. Since the assessee allegedly failed to respond to notices, the assessment was completed ex parte. The CIT(A) also dismissed the appeal for non-compliance.
Before the Tribunal, the assessee contended that notices had been issued to incorrect email addresses, resulting in complete lack of knowledge of both the assessment and appellate proceedings. The ITAT accepted the explanation, noting that even the appellate order had been sent to a wrong email address and therefore the delay in filing the appeal deserved to be condoned.
More importantly, when the Tribunal called upon the Assessing Officer to produce details of the alleged deposits, the Department itself reported that no information regarding the bank accounts, deposits or banking transactions was available on record. The Assessing Officer admitted that even after issuing notices under Section 133(6), no such details were available in the assessment records.
The Tribunal held that in the absence of any evidence showing which bank account received the deposits, which bank was involved, or what transactions were actually undertaken, the reassessment itself lacked foundation. It further criticized both the Assessing Officer and the CIT(A) for proceeding mechanically without verifying the basic facts. Consequently, the entire addition of ₹2.61 crore was directed to be deleted.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
1. ITA No. 1793/Bangalore/2025 for assessment year 2013 – 14 is filed by Mr. Imran Pasha (the assessee/appellant) against the appellate order passed by the National faceless appeal Centre Delhi dated 20 September 2024 wherein the reassessment order passed under section 147 read with section 144 of the income tax act, 1961 (the act) dated 29th of March 2022 passed by National faceless assessment Centre, Delhi (the learned assessing officer) determining the total income of the assessee at ₹ 26,123,000 was dismissed.
