Kamleshkumar Harihai Patel Vs DCIT (ITAT Ahmedabad)
Ahmedabad ITAT: Ex-Parte CIT(A) Order Set Aside – ₹35.50 Lakh Demonetisation Cash Deposit, Reassessment Limitation and Double Taxation Pleas Restored for De Novo Adjudication
The assessee challenged an ex-parte appellate order confirming reassessment and various additions. A significant jurisdictional ground was that the reassessment notice dated 29.03.2024 for AY 2017-18 was allegedly time-barred, since the disputed demonetisation cash deposit was only ₹35.50 lakh, i.e. below the ₹50 lakh threshold.
The AO had reopened the assessment based on information regarding alleged high-value transactions of ₹2.31 crore and ultimately assessed income at ₹80.33 lakh. The additions included ₹35.50 lakh towards demonetisation cash deposits, ₹4.49 lakh of Bardan expenses, ₹11.34 lakh of CIPC fogging expenses and ₹12.75 lakh relating to purchases.
On the ₹35.50 lakh addition, the assessee specifically contended that the cash deposits represented business sales already offered to tax, and therefore treating the same amount again as unexplained money under Section 69A read with Section 115BBE resulted in double taxation.
The CIT(A) had dismissed the appeal because the assessee failed to comply with several opportunities and did not furnish the required evidence. Before the ITAT, Senior Counsel undertook that, if another opportunity was granted, complete details and supporting evidence would be furnished.
The ITAT, in the interest of justice, remanded the entire matter to the CIT(A) for de novo adjudication, directing the assessee to furnish all supporting material and cooperate without seeking unnecessary adjournments. The appeal was allowed for statistical purposes.
Importantly, the Tribunal has not decided on merits either the ₹50-lakh reassessment limitation issue or the contention that treating already-recorded sales as unexplained cash deposits amounts to double taxation. Both issues remain open for adjudication by the CIT(A).
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
