Prakash Bhalotia Vs ITO (ITAT Kolkata)
In the case of Prakash Bhalotia Vs. ITO (ITAT Kolkata), the Tribunal remanded the case back to the Assessing Officer (AO) for fresh adjudication due to the lack of opportunity given to the assessee to present his evidence. The assessee had filed a return of income for AY 2017-18, declaring a total income of ₹7,24,055, but the case was selected for limited scrutiny due to cash deposits made during the demonetization period. However, the assessee failed to respond to notices issued under sections 143(2) and 142(1), leading to the AO treating a cash deposit of ₹63,11,500 as unexplained money under Section 69A and adding it to the assessee’s income.
The CIT(A) dismissed the appeal, stating that the assessee had failed to furnish necessary details or documentary evidence. In response, the assessee argued that due to personal issues, including his wife’s critical medical condition and his own business-related travel, he could not attend the hearings or submit the required documents. He presented medical records and a bank certificate to support his claim. The ITAT found that the assessee had not been given proper opportunities to present his case. In the interest of justice, the Tribunal remanded the case to the AO, directing that the assessee be allowed to submit all relevant documents and evidence for reconsideration. The appeal was allowed for statistical purposes, with the order of the AO and CIT(A) set aside.
