Thimme Gowda Niriksha Gowda Vs ITO (ITAT Bangalore)
ITAT Bangalore Restores ₹1.49 Cr Cash Deposit Case for Fresh Hearing -Peak Credit of ₹19.79 Lakh Applied by CIT(A) to be Re-Examined by AO
Assessee had not filed return originally. Based on JAO’s information, AO noticed cash deposits of ₹69,40,000 in Indian Bank. Notice u/s 148 was issued, & in response Assessee filed return on 01/06/2023 declaring ₹4,97,500. AO, however, on perusal of bank account, found total cash deposits of ₹1,49,50,000. Since Assessee had shown only ₹19,10,000 as gross income from other sources, the balance ₹1,30,40,000 was treated as unexplained cash credit u/s 68 r.w.s. 115BBE. Assessment was completed u/s 147 r.w.s. 144 at ₹1,35,37,500.
On appeal, CIT(A)/NFAC rejected Assessee’s plea that deposits were from contract/architect receipts & funds from father’s fuel station business. CIT(A) noted absence of TDS on alleged contract receipts, held claim unverifiable, & instead applied peak credit method, treating ₹19,79,857 (peak as on 11/07/2017) as income u/s 69A.
Before ITAT, no one appeared for Assessee. Revenue supported lower orders.
Tribunal observed that Assessee failed to properly represent before AO, CIT(A) & even before ITAT. However, considering principles of natural justice, ITAT restored matter back to AO for fresh examination, directing Assessee to furnish complete documents, records & statements. It also cautioned that if Assessee defaults again, no further leniency will be granted. Accordingly, appeal was allowed for statistical purposes.
