Sanjay Chalia Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, remanded a matter involving addition of Rs.24,65,103 under Section 69A of the Income Tax Act for Assessment Year 2020-21. The assessee challenged the addition, contending that the amount credited in his Punjab National Bank account did not represent his income but Government money fraudulently deposited by a relative, Mr. Virender, who allegedly embezzled Government funds and routed them through accounts of relatives and friends.
The assessee submitted that he was a salaried employee earning income below the taxable limit and had not filed a return of income. It was stated that an FIR had been registered against Mr. Virender regarding embezzlement of Government money and misuse of bank accounts. According to the assessee, Rs.24,65,000 was deposited in his bank account by Mr. Virender and later withdrawn by him. During assessment proceedings reopened under Section 147, the assessee explained that, except for Rs.4,42,808, the deposited amount did not belong to him.
The Tribunal observed that the assessment was reopened based on information arising from the FIR lodged by the Deputy Commissioner, Nuh. However, the assessment order did not indicate whether any independent investigation had been conducted by the Assessing Officer to verify the assessee’s explanation. The Tribunal also noted that the contents of the FIR and the role of the assessee, if any, in facilitating siphoning of Government money through his account were not clear from the record.
