Subbarao Jaladi Vs ITO (ITAT Visakhapatnam)
The Income Tax Appellate Tribunal (ITAT), Visakhapatnam Bench, in the case of Subbarao Jaladi Vs. ITO, for the Assessment Year (A.Y.) 2018-19, addressed the appeal filed by the assessee against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. The core issue of the dispute was the addition of ₹6,37,16,100/- to the assessee’s income, treating the cash deposits in a bank account as unexplained investment under Section 69 of the Income Tax Act, 1961.
Factual Background and Assessment Proceedings
The assessee, Subbarao Jaladi, is an individual engaged in the “Buffalo Mandi Commission Agent” business, acting as a mediator between farmers and traders, primarily catering to Kerala and Tamil Nadu. For the A.Y. 2018-19, the assessee filed a return declaring a total income of ₹5,04,980/-.
The return was selected for limited scrutiny under the Computer Assisted Scrutiny Selection (CASS) on the issue of cash deposits. Upon examination, the Assessing Officer (AO) noted substantial cash deposits totaling ₹6,37,16,100/- in the assessee’s current account with the Union Bank of India (UBI), which was not reconciled with the opening cash balance and disclosed turnover. The assessee’s Form 61A had indicated cash deposits of only ₹3,11,33,500/-.
