Mukesh Roshanlal Shah Vs The DCIT (ITAT Ahmedabad)
Assessment Reset, One Penalty Erased, Another Survives: ₹2.15-Crore Addition u/s 69A Restored, Penalty u/s 271AAC Deleted but ₹20,000 Penalty u/s 272A(1)(d) Confirmed—Ahmedabad ITAT
Summary: The Ahmedabad ITAT restored an ex parte reassessment involving an addition of ₹2.15 crore u/s 69A to the Jurisdictional AO after finding that the assessee’s online submissions & supporting evidence had not been properly examined. Consequently, the penalty of ₹16.58 lakh u/s 271AAC(1) was deleted. However, the separate ₹20,000 u/s 272A(1)(d) penalty for non-compliance with statutory notices was confirmed because the assessee failed to demonstrate any reasonable cause for the defaults.
Entire Cash Deposits Treated as Unexplained Money u/s 69A
The assessee’s assessment for AY 2020-21 was reopened & completed u/s 147 r.w.s. 144 & 144B. According to the AO, several opportunities were granted through notices issued u/ss 148 & 142(1) as well as show-cause notices. However, the assessee did not respond to those notices.
Consequently, the AO proceeded to complete the assessment ex parte. Cash deposits aggregating to ₹2,14,57,800, appearing in the assessee’s bank account, were treated in their entirety as unexplained money u/s 69A. The addition was subjected to the special rate of tax prescribed u/s 115BBE.
