Sunder Jindal Vs NFAC (ITAT Delhi)
Loan Withdrawals Cited as Source – Assessee Gets Fresh Chance to Prove Source of Deposits- ITAT Sends Cash Deposit Dispute Back for Verification
Delhi SMC Bench set aside the ex-parte assessment u/s 144, giving the Assessee another chance to explain cash deposits of ₹13.74 lakh made in his bank account.
The case was reopened u/s 147 on information that the Assessee had deposited ₹13.74 lakh in cash during FY 2011-12. Despite repeated notices, there was no compliance, & AO completed best judgment assessment, treating the deposits as unexplained u/s 68. CIT(A) upheld the addition on account of non-prosecution.
Before Tribunal, the Assessee contended that the deposits came from earlier bank loan withdrawals (₹31.72 lakh in 2008) & accumulated cash balance over previous years. He furnished a cash flow statement showing the movement of deposits & withdrawals from FY 2008-09 to FY 2011-12 to substantiate the explanation.
Tribunal found that these details were never examined by AO or CIT(A). Therefore, in the interest of justice, the matter was remanded back to AO for fresh verification of the loan, cash flow & other documents, with direction to give due opportunity to the Assessee. Accordingly, the appeal was allowed for statistical purposes
