Prem Lata Sharma Vs ITO (ITAT Ranchi)
In the case of Prem Lata Sharma Vs ITO, the Income Tax Appellate Tribunal (ITAT), Ranchi, partially allowed an appeal and referred the case back to the Assessing Officer (AO). The core issue revolved around the unexplained cash deposits of ₹26,60,000 made by the assessee, Prem Lata Sharma, during the demonetization period of the financial year 2017-18.
The assessee argued that the cash came from her business of buying and selling building materials and represented her sales proceeds. She claimed to be filing income tax returns under Section 44AD of the Income Tax Act, with a reported turnover of ₹40 lacs, ₹50 lacs, and ₹50 lacs for the assessment years 2015-16, 2016-17, and 2017-18, respectively. The AO, however, rejected her explanation and treated the entire amount as unexplained money, an addition that was later upheld by the CIT(A).
During the tribunal proceedings, the assessee’s representative admitted that she did not file GST returns and was unable to provide evidence to substantiate her claimed turnover beyond what was stated in her income tax returns. The revenue’s representative countered that the assessee had failed to produce any documentation to prove her business activities or the transactions that led to the cash deposits.
