Case Law Details
Rakesh Reddy Keshanna Vs ITO (ITAT Hyderabad)
In a noteworthy judgment dated December 26, 2023, the Income Tax Appellate Tribunal (ITAT) Hyderabad bench addressed a significant concern related to the assessment of cash deposits made outside the relevant assessment year. The case, Rakesh Reddy Keshanna Vs Income Tax Officer (ITO), centered around the addition of Rs. 20 lakhs to the income of the assessee by the Assessing Officer due to deposits made during the demonetization period and shortly thereafter.
Background of the Case
The appellant, Rakesh Reddy Keshanna, faced scrutiny for deposits totaling Rs. 20 lakhs in his bank accounts, prompting the Assessing Officer to seek explanations for the source of these funds. The assessee’s inability to furnish satisfactory explanations led to the entire sum being added to his income for the assessment year 2017-18. Challenging this decision, the assessee appealed to the Commissioner of Income Tax (Appeals) – National Faceless Appeal Centre (NFAC), Delhi, which upheld the Assessing Officer’s action for lack of convincing evidence.
Tribunal’s Analysis and Ruling
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