Case Law Details
Srimathi Pichara Vs ITO (ITAT Hyderabad)
The case of Srimathi Pichara Vs ITO was heard by the Income Tax Appellate Tribunal (ITAT) Hyderabad. The assessee filed an appeal against the ex-parte addition of cash deposits made during the demonetization period under Section 69A of the Income Tax Act. The ITAT set aside the addition and directed the Assessing Officer to readjudicate the matter after providing the assessee with an opportunity to produce relevant documents for fact verification. This article provides an analysis of the case and its implications.
Analysis: The assessee failed to furnish details regarding cash deposits amounting to Rs. 18,98,000/- made during the demonetization period despite several opportunities and notices from the Assessing Officer. The Assessing Officer proceeded ex parte and added the amount as unexplained money under Section 69A of the Income Tax Act. The assessee appealed to the Commissioner of Income Tax (Appeals), but the appeal was dismissed as the assessee failed to submit supporting documents.
The assessee, in the present appeal, contended that the cash deposits were from business income and that there was no reason to suspect those deposits. The assessee also requested the case to be remanded to the Assessing Officer for factual verification and the submission of relevant documents.
The ITAT observed that the assessment order was passed under Section 144 of the Act, as the assessee did not appear before the Assessing Officer. The ITAT acknowledged the reasons provided by the assessee for non-appearance, such as personal reasons and the impact of the Covid-19 pandemic during the proceedings before the first appellate authority.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
