Maheshchandra Natvarlal Parikh Vs CIT (Gujarat High Court)
Gujarat High Court held that Revisional authority ought to have taken into consideration that AO has to pass best judgement assessment order without granting an opportunity of being heard. Thus, matter remanded back to AO for de novo consideration.
Facts- The petitioner is an individual non-resident. Petitioner came to India from USA to purchase jewelry for his daughter’s wedding and withdrew amount of Rs. 8 Lakh from NRE Account of the petitioner. However, since the petitioner and his wife became severely ill and left India to go to USA and could not deposit the unutilized cash amount in their bank account and the cash amount was kept with the relative of the petitioner. Thereafter, due to demonetization from 08.11.2016, the wife of the petitioner came to India and deposited the amount of Rs. 6,33,500/- on 29.11.2016 in the bank account.
It is the case of the petitioner that AO without considering the replies filed by the petitioner framed best judgement assessment u/s. 144 of the Act by making addition of cash deposit amount of Rs. 6,33,500/- in NRO account. The petitioner was not aware about the Assessment Order passed on 23.12.2019.
The petitioner thereafter filed revision application u/s. 264 of the Act after the recovery proceeding was initiated by the respondent-authorities along with all the documents containing the bank statement of NRE and NRO accounts in name of the petitioner. Respondent No.1 by impugned order dated 07.03.2022 rejected the revision application filed on 18.12.2020 filed by the petitioner. Being aggrieved, the present appeal is filed.
