Case Law Details
Harminder Singh Vs ITO (ITAT Chandigarh)
ITAT Chandigarh held that addition on account of failure to provide necessary explanation in respect of source of cash deposits in bank confirmed without considering explanation set aside with one more opportunity to assessee in the interest of substantial justice and fair play.
Facts- This is an appeal filed by the assessee against the ex-parte order passed by the ld. CIT(A)-3, Ludhiana dated 10.07.2019 pertaining to Assessment year 2011-21 wherein the action of the Assessing officer in treating the source of cash deposit amounting to Rs.49,40,750/- by treating the same as unexplained has been confirmed.
Conclusion- Held that the AO has passed the order u/s 144 read with Section 147 dated 14.12.2018 wherein an addition of Rs.49,40,750/- has been made for failure on the part of the assessee to provide necessary explanation in respect of the source of cash deposits in his bank account maintained with Axis Bank Ltd. Further, even before the ld. CIT(A), though notices have been issued which were not responded to and which has resulted in ex-parte order so passed by the ld. CIT(A). We, therefore, find that both before the AO as well as before the ld. CIT(A), the additions have been made and confirmed without considering the explanation which the assessee may like to submit in support of the source of the cash deposit in his bank account maintained with Axis Bank. Therefore, in the interest of substantial justice and fair play, we believe that the assessee deserves one more opportunity and the matter is, accordingly, set aside to the file of the AO to decide the same afresh after providing reasonable opportunity to the assessee. Needless to say, the assessee shall file the necessary information and documentation in support of his claim explaining the source of the cash deposit and attend to the proceedings before the AO and ensure timely completion of the proceedings without seeking unnecessary adjournments in the matter.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
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