Nitrangan Singh Gwal Vs ITO (ITAT Allahabad)
In Nitrangan Singh Gwal vs. ITO, the ITAT Allahabad dealt with an appeal involving a ₹45,42,005 cash deposit in an ICICI Bank account during the financial year 2010-11. The Assessing Officer (AO) initiated proceedings under Section 147 of the Income Tax Act, 1961, issuing a notice under Section 148. The assessee failed to respond to multiple notices, leading to an ex parte assessment. The Commissioner of Income Tax (Appeals) [CIT(A)] also observed non-compliance during appellate proceedings.
Before the tribunal, the assessee submitted an affidavit claiming ignorance about the source of the deposits and alleged fraudulent activity in his bank account. The ITAT, acknowledging the lack of complete evidence and in consideration of the principles of natural justice, provided the assessee the benefit of the doubt. The matter was remanded to the AO for fresh adjudication, granting the assessee another opportunity to present his case. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT ALLAHABAD
This is an appeal arising from an order under section 250 of the Income Tax Act, 1961 (hereinafter the ‘Act’) passed by ld. CIT(A), NFAC (hereinafter the ld. ‘CIT(A) vide order dated 16.11.2023. It is seen that proceedings under section 147 of the Act were initiated on account of a cash deposit of Rs.4542005/- in a savings bank account maintained with ICICI Bank Limited, Mirzapur during F.Y. 2010-11. Accordingly, notice under section 148 of the Act dated 26.03.2018 was issued. It is seen from the record that the proceedings before the ld. AO were conducted in an ex parte manner since the assessee, for reasons best known to him, did not comply with any of the notices issued by the ld. AO from time to time.
