Case Law Details
Radhakrishna Vs ITO (ITAT Bangalore)
Introduction: The recent order by the Income Tax Appellate Tribunal (ITAT) Bangalore in the case of Radhakrishna vs ITO addresses a crucial issue related to cash deposits made during the demonetization period. The ITAT remanded the matter for reconsideration, highlighting the claim that the cash deposits are attributed to business receipts of a bar and restaurant. This article provides an in-depth analysis of the case, shedding light on the circumstances, arguments, and implications.
Detailed Analysis: The appellant, Radhakrishna, challenged the CIT(A)’s order dated 15.03.2023, pertaining to the Assessment Year 2017-18. The appeal was filed with a delay of 150 days, and the application for condonation of delay was accepted by the ITAT. The original appeal before the CIT(A) was dismissed ex-parte due to the non-compliance of hearing notices by the assessee.
On the merits of the case, Radhakrishna claimed to be the manager of a bar and restaurant and asserted that the cash deposits under consideration were business receipts from the said establishment. The contention was that there is sufficient evidence to substantiate the source of these cash deposits. The ITAT, recognizing the potential merit in the assessee’s claim, decided to provide another opportunity for a fair representation.
During the hearing, the learned AR argued that Radhakrishna, being an illiterate person with limited schooling, might not have been aware of notices sent via email, which could have ended up in the spam folder. The AR requested a restoration of the case to the files of the CIT(A) to allow proper representation.
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