Shiv Kumar Vs ITO (ITAT Delhi)
In the case Shiv Kumar vs. Income Tax Officer (ITO), the Income Tax Appellate Tribunal (ITAT) Delhi ordered a reassessment regarding an unsubstantiated deposit of ₹10.3 lakh during the demonetization period. The original appeal filed by the assessee, Shiv Kumar, was dismissed by the Commissioner of Income Tax (Appeals) [CIT(A)] because he did not meet the advance tax condition under Section 249(4)(b) of the Income Tax Act. The CIT(A) upheld the Assessing Officer’s (AO) ex-parte assessment under Section 144 of the Act, which added ₹10.3 lakh to the assessee’s income under Section 69A, as the source of the cash deposits was not sufficiently justified.
Representing the assessee, Ms. Sanju Kumari argued that Shiv Kumar had not filed a tax return for the year, as his income, including business and interest income, was below the taxable threshold of ₹1.47 lakh. Despite providing some explanations to the AO during the initial assessment, the AO determined these were insufficient. The Tribunal, after reviewing the situation, decided it was fair to allow the assessee another chance to present evidence supporting the source of the deposits. It set aside the original order, directing the AO to conduct a fresh assessment based on the assessee’s submissions and following legal protocols. Shiv Kumar has been instructed to promptly respond to any notices served in this reassessment process.
