Ganesh Mahadeorao Thaware Vs ITO (ITAT Nagpur)
Income Tax Appellate Tribunal (ITAT), Nagpur Bench, has remanded the appeal of Ganesh Mahadeorao Thaware, a salaried individual, back to the Commissioner of Income Tax (Appeals) (CIT(A)), National Faceless Appeal Centre, Delhi. The tribunal’s decision, issued on February 25, 2025, directs the CIT(A) to freshly adjudicate the case, including the crucial issue of the validity of the assessment’s reopening, which had remained unaddressed in the earlier appeal.
The case pertains to the Assessment Year 2014-15 and involves a significant cash deposit of Rs. 3,65,19,694 identified by the Income Tax Department.
Background of the Dispute
Ganesh Mahadeorao Thaware, who was serving as the Principal of Arvind Indo Public CBSE School in Saoner, Maharashtra, during the relevant financial year, did not file an income tax return. He maintained that he did not have taxable income. However, the Income Tax Department received information indicating substantial cash deposits in his name, amounting to ` 3,65,19,694.
Given that no return of income was filed despite the detected transactions exceeding the basic exemption limit, the Assessing Officer (AO) initiated reassessment proceedings under Section 147 of the Income Tax Act, 1961. A notice under Section 148 was issued on March 28, 2021, and served on the assessee’s registered e-mail, requesting him to file a return.
