Tapas Kumar Chanda Vs ITO (ITAT Cuttack)
The Income Tax Appellate Tribunal (ITAT) in Cuttack has remanded a tax appeal concerning a cash deposit of ₹9 lakh, granting the assessee, Tapas Kumar Chanda, one more opportunity to furnish documentary evidence. The decision came in the case of Tapas Kumar Chanda vs. ITO, where the assessee’s appeal was initially delayed by 302 days. The tribunal, after reviewing a condonation petition supported by medical certificates, accepted the delay as non-intentional, attributing it to the assessee’s illness.
The dispute arose during the assessment for the year 2017-18, when the Assessing Officer (AO) noted that the assessee had deposited ₹11.98 lakh in cash during the demonetization period. While the assessee claimed that a portion of this amount was from prior withdrawals and the rest from past savings related to his gold and silver ornaments business, he failed to provide documentary evidence to support the cash-in-hand claim of ₹4.18 lakh. Consequently, the AO completed the assessment ex-parte under Section 144, determining a total income of ₹9,53,550.
The assessee then appealed to the Commissioner of Income Tax (Appeals), or CIT(A). However, despite receiving multiple hearing notices, the assessee did not appear. Citing a lack of prosecution, the CIT(A) dismissed the appeal, confirming the AO’s addition.
