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Cash deposit in assessee’s account was declared in ITR of parent trust: ITAT Remands Matter to AO

Case Law Details

TaxGuru Citation
2025 taxguru.in 735
Case Name
Bhiwandi Nizampur Nagarpalika College Vs Assessing Officer (ITAT Mumbai)
Date of Judgement/Order
Only available for paid members
Related Assessment Year
2018-19
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Bhiwandi Nizampur Nagarpalika College Vs Assessing Officer (ITAT Mumbai)

In the matter abovementioned ITAT has remanded the matter to AO after observing that revenue has accepted the assessee’s contention in earlier and subsequent years.

Assessee is an AOP and has not filed its return of income for the year under consideration. The case was reopened for the reason for the reason that the assessee has huge cash deposits amounting to Rs. 1,63,75,639/- current accounts. When assessee did not comply with notice issued then AO passed assessment order u/s. 147 r.w.s 144/144B, determining total income at Rs. 13,10,051/- towards the net profit @ 8% on the total deposits by treating the same as business receipts. CIT (A) dismissed appeal on the ground that assessee has not filed its return of income nor has it filed its advance tax. Further, assessee has not requested for exemption from operation of Sec. 249(4)(b).

Before ITAT it was submitted that assessee didnot file ITR for the AY 2016-17 & 2019-20 which was accepted by the revenue that assessee was not entitled to file ITR. Hence, no addition could be made for the impugned year, as the rule of consistency would be applicable in assessee’s case on no change in facts and circumstances. Revenue argued that no details were filed before AO and the case was already considered on merits before CIT (A) hence there is no need to interfere.

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