Sh. Rajiv Jain Vs ITO (ITAT Delhi)
In a recent judgment, the Income Tax Appellate Tribunal (ITAT) Delhi, in the case of Sh. Rajiv Jain vs. ITO, has ruled in favor of the assessee regarding a disputed cash deposit of Rs. 4,92,900. This decision comes after a remand order from the Hon’ble High Court in Tax Appeal No. 1115/2017 dated November 13, 2018.
The core of the dispute revolved around the assessee’s explanation that the cash deposit was sourced from prior cash withdrawals totaling Rs. 5,10,550. The High Court had noted that the Commissioner of Income Tax (Appeals) (CIT(A)) had introduced a new reason for rejecting the assessee’s explanation—failure to explain the reason for the withdrawals—without providing the assessee an opportunity to respond. This was deemed a surprise to the assessee, as this specific query was not raised by the Assessing Officer initially.
The High Court, in its remand order, specifically directed the Tribunal to re-examine the issue of the Rs. 4,92,900 deposit, allowing the assessee to provide additional evidence to justify the substantial cash withdrawals made between June 12, 2009, and October 16, 2009. The High Court’s directive aimed for a fresh consideration of the matter on its merits, without prejudicing the final outcome.
