Income Already Taxed Cannot Be Reassessed as Unexplained Cash Credit: ITAT Ahmedabad

The Income Tax Appellate Tribunal (ITAT) Ahmedabad Bench has overturned an addition of ₹41,99,500/- made by the Assessing Officer (AO) to the income of Dipakkumar Pushkarray Vyas, proprietor of M/s. Krupa Jewellers, for the assessment year 2012-13. The Tribunal ruled that income already accounted for in audited books and subjected to taxation cannot be re-added as an unexplained cash credit, emphasizing the principle against double taxation.

The appeal, filed against an order by the National Faceless Appeal Centre (NFAC), Delhi, focused primarily on the validity of reassessment proceedings and the substantive addition made under Section 68 of the Income Tax Act, 1961.

Background of the Case: The assessee, Dipakkumar Pushkarray Vyas, had filed his original income tax return for Assessment Year 2012-13 on August 31, 2012, declaring a total income of ₹19,85,572/-. The case was subsequently reopened by the AO for reassessment. A notice under Section 148 of the Act was issued on March 28, 2019, following which the assessee filed a revised return on April 25, 2019. The reasons for reopening the assessment were provided to the assessee, who promptly objected to the proceedings on November 27, 2019. This objection was, however, dismissed by the AO on December 6, 2019.