Baiju Kabeer Vs ACIT (ITAT Cochin)
In the case Baiju Kabeer vs. ACIT (ITAT Cochin), the Income Tax Appellate Tribunal (ITAT) remanded the case back to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh assessment due to insufficient opportunity for the appellant to explain cash deposits. The issue arose from an income tax assessment for the year 2017-18. Baiju Kabeer had not filed his income tax return as required under Section 139 of the Income Tax Act, 1961. However, upon discovering cash deposits of ₹1,00,95,500 in his ICICI Bank account, the Assessing Officer (AO) initiated proceedings under Section 148 of the Act. The appellant subsequently declared an income of ₹7,74,559, but the AO revised this to ₹15,73,061, adding ₹9,13,501 as unexplained cash deposits under Section 69A. The CIT(A) later reduced this addition to ₹4,13,501 after considering the declared turnover.
Upon appeal, the ITAT observed that the appellant had not been given adequate opportunity to provide an explanation for the source of the cash deposits during proceedings with the CIT(A). The tribunal highlighted the importance of procedural fairness and directed the CIT(A) to conduct a de novo assessment. This fresh assessment is to be carried out after providing the appellant with a reasonable chance to present evidence supporting the cash deposits. The ITAT allowed the appeal for statistical purposes, ensuring the appellant’s arguments would be reconsidered in alignment with legal procedures.
