Akbarali Noordeen Vs ITO (ITAT Chennai)
Entire Cash Deposits Of ₹1.47 Crore Added Under Section 69A—Chennai ITAT Grants One More Opportunity Despite Assessee’s “Nonchalant Attitude”
Summary: The Chennai Bench of the Income-tax Appellate Tribunal has restored an ex parte reassessment to the Assessing Officer where the entire cash deposits of ₹1,47,25,490 in the assessee’s bank account had been added as unexplained money under section 69A. Although the Tribunal strongly deprecated the assessee’s repeated failure to comply with notices issued by both the Assessing Officer and the First Appellate Authority, it held that, in the interest of justice and equity, one final opportunity should be provided to substantiate the claim that the cash deposits represented the sale proceeds of his business.
Facts of the case
The assessee did not file his return of income for AY 2018-19. Information was available with the Income-tax Department showing cash deposits aggregating to ₹1,47,25,490 in a current account maintained with Lakshmi Vilas Bank.
To examine the source of these deposits, the Assessing Officer issued a notice under section 148 on 1 April 2022. The assessee did not respond to the notices subsequently issued under section 142(1). A show-cause notice was issued on 19 December 2023, followed by a final show-cause notice dated 20 January 2024.
Want to Read the Complete Judgment?
You have read the free case summary. Unlock the full judgment, the detailed judicial reasoning and the downloadable PDF, along with every other premium judgment on TaxGuru.
Already subscribed? Log in
One subscription covers the entire premium judgment library, not just this case.
