8% Income Estimate Based Solely on Bank Deposits Remanded: ITAT Bangalore

Thaladammanahalli Muninarayanappa Ravikumar Vs ITO (ITAT Bangalore) Bengaluru ITAT Remands Ex Parte Assessment Based on Demonetisation Cash Deposits; AO Directed to Recompute Income on Proper Evidence The Bengaluru ITAT has set aside an ex parte assessment where the Assessing Officer estimated the assessee’s income at 8% under section 44AD solely on the basis of cash and non-cash deposits reflected in the bank account during the demonetisation period. The Tribunal held that such estimation, without examining supporting material regarding the actual business turnover and income, was not s...