Sanjay Awathare Vs ACIT (ITAT Hyderabad)
ITAT Hyderabad held that assessee failed to participate in proceeding and produce any explanation or source of deposits as well as credits since he was in judicial custody. Accordingly, matter remanded back for fresh adjudication.
Facts- The present appeals are preferred by the assessee mainly contesting that CIT(A) as erred in confirming addition of Rs. 81,72,000/- made by AO without appreciating that on 08.01.2024 & 13.02.2024 adjournment was filed requesting 2 month’s time and further filed adjournment requesting time on 26.08.2024 (Ay.2019-20) on the ground that as the Appellant is in judicial remand the counsel is facing difficulties in obtaining necessary information/relevant documents.
Conclusion- Held that the assessee is still in the judicial custody and therefore, he could not avail the opportunity granted by this Tribunal to produce relevant evidence before the learned CIT (A). Thus, it is clear that the assessee could not produce any explanation or the source of the deposits as well as credits in the bank account of the assessee due to the reason that he was in the judicial custody. The assessee has also taken a plea that there are substantial withdrawals from the bank account which can be considered as source of subsequent cash deposits in the bank account. All these facts are required to be verified and reexamined on the basis of the relevant record to be produced by the assessee. Accordingly, in the facts and circumstances of the case and in the interest of justice, we set aside the matter for the A.Ys 2019-20 and 2020-21 to the record of the Assessing Officer for fresh adjudication after giving an opportunity to the assessee to produce the relevant details and evidence explaining the source of credits as well as the cash deposits in the bank account of the assessee.
