Sengodan Govindarajan Vs ITO (ITAT Chennai)
Material Facts: The assessee, an individual, filed the return of income for AY 2017-18 on 29.03.2018 declaring income of Rs.1,26,000. The case was selected for limited scrutiny to verify cash deposits made during the year, including during the demonetisation period. During assessment, the assessee submitted that Rs.50 lakh had already been declared under the PMGKY Scheme and that an explanation regarding cash deposits of Rs.10 lakh had not been accepted in the assessment for AY 2016-17, where the amount had been brought to tax under section 143(3).
The Assessing Officer found that cash deposits of Rs.65,93,500 had been made during the demonetisation period and total cash deposits during the year amounted to Rs.67,55,000. After accepting the disclosure of Rs.50 lakh under the PMGKY Scheme, the Assessing Officer treated the balance Rs.17 lakh as unexplained and added it under section 69A read with section 115BBE by assessment order dated 30.12.2019.
Procedural History
The assessee appealed before the Commissioner of Income Tax (Appeals), challenging both the legal validity of the assessment for non-issuance of notice under section 143(2) after filing a revised return and the addition on merits. The CIT(A) rejected both grounds, holding that the revised return did not disclose any new income, deduction, exemption or source of income apart from claiming TDS credit and therefore no fresh notice under section 143(2) was required. The addition of Rs.17 lakh and denial of TDS credit were also confirmed. The assessee appealed before the ITAT Chennai.
