Mahesh Padmnabhrao Kashikar Vs ITO (ITAT Pune)
The Income Tax Appellate Tribunal (ITAT) in Pune has remitted the case of Mahesh Padmnabhrao Kashikar back to the Commissioner of Income-tax (Appeals) [CIT(A)] for a fresh hearing. The appeals concern an addition of Rs. 14,89,425 to the assessee’s income for the assessment year 2011-12, as well as a related penalty. The addition was made by the Income Tax Officer (ITO) after the assessee failed to explain the source of cash deposits in a joint bank account.
The assessee argued that the transactions were properly disclosed in his wife’s income tax return and that the ITO should have conducted a proper inquiry before issuing a notice. However, the ITAT rejected this legal argument, noting the assessee’s consistent failure to cooperate with both the ITO and the CIT(A). The court stated that the assessee’s non-compliance had left the authorities with no option but to pass a best judgment assessment.
Despite dismissing the legal challenge, the ITAT decided to give the assessee one more opportunity on the merits of the case. The tribunal’s decision to remit the matter was made in light of the assessee’s admission that he could not provide the necessary details and evidence due to his non-compliance with the lower authorities. By setting aside the orders, the ITAT has directed the CIT(A) to give the assessee a “reasonable opportunity of hearing,” which includes presenting all relevant documents and evidence to explain the source of the cash deposits. The assessee has been instructed to be vigilant and not seek unnecessary adjournments. Both the quantum addition appeal and the penalty appeal were allowed for “statistical purposes,” meaning they were not decided on their merits but were sent back for a new adjudication.
