PCIT Vs Ashokumar Bhavanbhai Patel (Gujarat High Court)
Summary: The Gujarat High Court dismissed four Tax Appeals filed by the Revenue under Section 260A of the Income Tax Act, 1961, arising from the common order dated 6th March 2023 passed by the Income Tax Appellate Tribunal, ‘C’ Bench, Ahmedabad, for Assessment Years 2010-11 and 2011-12. The Tribunal had upheld the assessee’s challenge to the validity of reassessment proceedings under Section 147 of the Act.
The Assessing Officer had noticed cash deposits of Rs.15,80,000/- in HDFC Bank Limited for Assessment Year 2010-11 and Rs.12,16,500/- in Kotak Mahindra Bank for Assessment Year 2011-12. The assessee had not disclosed the source of the cash deposits or offered the amount for taxation. Notices under Section 148 were consequently issued on 30th March 2016, followed by assessment orders treating the cash deposits as unexplained income. The CIT(A) partly allowed the assessee’s appeals, after which both sides preferred cross appeals before the Tribunal.
Before the Tribunal, the assessee contended that the reasons recorded for reopening did not establish escapement of income and showed that the Assessing Officer merely intended to verify the source of the cash deposits and transactions. The Tribunal accepted the challenge to the validity of the reassessment.
