Chetanbhai Chhaganbhai Sojitra Vs ITO (ITAT Rajkot)
The appeal before the ITAT Rajkot concerned Assessment Year 2013–14 and arose from a reassessment order passed under Sections 147 read with 144B of the Income-tax Act, 1961, which was later dealt with by the National Faceless Appeal Centre. The assessee, an individual, had not filed a return of income for the relevant year. Information received through the Insight Portal (ITBA system) indicated substantial cash deposits in the assessee’s bank accounts with HDFC Bank, Jamnagar. During investigation proceedings, summons were issued and the assessee appeared but failed to furnish bills, vouchers, or supporting details to explain the cash deposits and credits in the bank accounts. Consequently, the Assessing Officer formed a belief that income had escaped assessment and reopened the case after obtaining due approval.
A notice under Section 142(1) was issued, followed by a draft assessment order and show cause notice. The assessee responded but relied primarily on bank statements, claiming that he was engaged in trading of brass components and that the credits represented sale proceeds deposited by customers, while withdrawals represented business purchases. The Assessing Officer rejected the explanation, noting that the assessee had filed an invalid return claiming presumptive taxation under Section 44AF, which was not applicable for the year under consideration. Treating the entire cash deposits of ₹37,82,840 as unexplained money under Section 69A, the Assessing Officer brought the amount to tax under Section 115BBE.
