Section 263 Invoked for Failure to Verify Source of Cash Deposits

Nagaraj Yasodha vs. PCIT (ITAT Bangalore) AO’s Mechanical Acceptance of Affidavit Fatal: 263 Revision Upheld in Cash Deposit Case – ITAT Bangalore The Bangalore Bench of the ITAT, in Shri Nagaraj Yasodha vs. Pr. CIT, Bangalore (ITA No.1150/Bang/2025, AY 2015-16, order dated 19-12-2025), upheld the revisionary action u/s 263, holding that the Assessing Officer had passed the reassessment order without proper enquiry into the source of large cash deposits. In this case, reassessment was initiated on account of cash deposits of ₹75.10 lakh in the assessee’s bank account. During reassessme...