Amit Hasmukhbhai Shah Vs ITO (ITAT Ahmedabad)
TAT Ahmedabad restores ₹15.88 lakh reassessment addition, directs AO to re-verify cash deposits after considering evidence overlooked by lower authorities.
Ahmedabad: The Income Tax Appellate Tribunal (ITAT), Ahmedabad bench, has remitted a case involving a reassessment addition of ₹15.88 lakh back to the Assessing Officer (AO) for fresh verification. The Tribunal found that both the AO and the Commissioner of Income Tax (Appeals) [CIT(A)] had failed to adequately consider the information and evidence submitted by the assessee during the assessment proceedings concerning cash deposits made in his bank account.
The case pertains to the Assessment Year (AY) 2010-11 and involves the assessee, Amit Hasmukhbhai Shah. The matter came under scrutiny when the Income Tax Department identified cash deposits totaling ₹15,88,210/- in the assessee’s savings bank account held with Cosmos Co-operative Bank Ltd. in Vadodara. Based on this information, the case was reopened for reassessment, as the department believed that this income had escaped assessment in the original proceedings.
During the reassessment proceedings, the Assessing Officer called upon the assessee to explain the source of these cash deposits. The assessee, in response, submitted that the amounts deposited represented loans taken from various individuals, including farmers, friends, and relatives. To support this claim, the assessee provided confirmation letters from the concerned individuals who had allegedly provided these loans.
