Sardar Jabasingh Vs ITO (ITAT Chennai)
The Income Tax Appellate Tribunal (ITAT) in Chennai heard the case of Sardar Jabasingh vs. Income Tax Officer (ITO) concerning unexplained cash deposits totaling Rs. 1,03,23,100 in his bank accounts for the 2016-17 assessment year. The case was initiated due to a discrepancy in reported income and significant cash deposits in Jabasingh’s accounts. He initially claimed the funds were business-related under Section 44AD, reporting limited income; however, he later asserted that the funds were collected from parish members for supposed housing projects through the Tamil Nadu Housing Board, facilitated by an individual named Ravi Kumar. He alleged he was misled by Kumar, who promised housing for parish members affected by floods. Following complaints by parish members, Jabasingh claimed he returned the funds. Despite providing partial evidence, such as police complaints, the Commissioner of Income Tax (Appeals) dismissed the appeal. ITAT, however, noted the inconsistencies in explanations and remanded the case back to the Assessing Officer (AO) for fresh assessment, allowing Jabasingh another opportunity to provide documentation on the source of funds. The AO has been instructed to conduct a de novo assessment, giving Jabasingh a fair chance to present evidence, without ITAT’s observations affecting the AO’s independent evaluation.
