Rushabhdev Swetambar Murtipujak Jain Sangh Vs ITO (Exemption) (ITAT Ahmedabad)
Summary: In Rushabhdev Swetambar Murtipujak Jain Sangh vs ITO (Exemption), ITAT Ahmedabad addressed reassessment proceedings under section 147 of the Income-tax Act, 1961, arising from cash deposits totaling Rs. 75,41,227/- recorded under an old PAN (AAATR2081G) that had allegedly been surrendered. The Assessing Officer issued a notice under section 148, completed ex parte assessment under section 144, and added the deposits as unexplained under section 69A. The assessee contended that reassessment was invalid because it was based on a surrendered PAN, while all returns were filed under the new PAN (AAATR5288B). ITAT upheld the reopening, noting that the old PAN was still active in banking and TDS reporting, creating jurisdictional validity for the AO. However, the Tribunal confirmed CIT(A)’s decision to set aside the ex parte assessment and remand it for fresh adjudication, directing proper reconciliation of deposits, verification of TDS credits, and granting the assessee opportunity for evidence and explanation. Penalty and interest would be considered after reassessment.
ITAT Ahmedabad Upholds Reopening on Surrendered PAN – Remands ₹75 Lakh Deposit Issue for Fresh Verification
Assessee, a public charitable trust registered u/s 12AA, challenged CIT(A) order dated 07.11.2024 arising from reassessment proceedings u/s 147/144 wherein cash deposits of ₹75,41,227 were treated as unexplained money u/s 69A.
