Sanjaykumar Virabhai Patel Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that since the assessee, being an agriculturist was not well versed with tax proceedings, was unable to file required documents against addition on account of unexplained cash credit u/s. 69A of the Income Tax Act before AO. Hence, matter restored back to AO for proper verification.
Facts- As per the information available on record, the assessee made cash deposit of Rs. 32,85,400/- in saving bank account during financial year 2012-13. The case of the assessee was reopened after recording reasons and notice u/s. 148 of the Act dated 31-03-2021 was issued. In response to the notice u/s. 148, the assessee did not file the return of income. Subsequently, notice u/s. 142(1) was issued. AO observed that in response to the said notice, the assessee filed return of income on 15-02-2022 declaring total income of Rs. 1,89,031/-. The assessee has shown sales of Rs. 32,85,400/- and purchase at Rs. 32,87,144/-. The assessee carried out the business of animal husbandry. The assessee is an agriculturist and dealing with animal husbandry business on no profit and no loss basis. After going the assessee’s submissions, AO held that the assessee failed to explain the source of cash deposits amounting to Rs. 32,85,400/- and therefore made addition of the same amount on account of unexplained cash credits u/s. 69A of the Act.
