Sunil Jayantilal Sachdev Vs ITO (ITAT Hyderabad)
In Sunil Jayantilal Sachdev Vs ITO (ITAT Hyderabad), the Income Tax Appellate Tribunal (ITAT) reviewed an appeal concerning the assessment year 2017-18. The assessee, an individual taxpayer, failed to file a return under section 139(1) of the Income Tax Act, 1961. The Assessing Officer (AO), upon discovering cash deposits made during the demonetization period in the assessee’s Axis Bank account, issued a notice under section 142(1) and directed the assessee to file a return. However, the assessee did not respond or appear before the AO, leading the AO to complete the assessment under “Best Judgement Assessment” (section 144), treating the cash deposits of Rs. 37,12,324 as unexplained income.
The CIT(A) upheld the AO’s action but directed the AO to correct the figure of the cash deposits. The taxpayer, dissatisfied with the decision, appealed to the ITAT. The counsel for the assessee argued that the assessee had submitted a detailed explanation regarding the source of the deposits, but the NFAC (National Faceless Appeal Centre) had failed to consider these submissions before confirming the AO’s action. The ITAT agreed that the submissions and evidence had not been properly examined. Consequently, the ITAT decided to remand the matter back to the AO for a fresh assessment, directing the AO to consider the evidence submitted by the taxpayer and provide a reasonable opportunity for the taxpayer to present their case. The appeal was partly allowed for statistical purposes, with a focus on ensuring a proper review of the evidence.
