Tribunal grants final chance to assessee to explain cash deposit source The Tribunal allowed the appeal filed by the assessee for statistical purposes, directing the case to be restored to the Ld. CIT(A) with a final ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tribunal grants final chance to assessee to explain cash deposit source
The Tribunal allowed the appeal filed by the assessee for statistical purposes, directing the case to be restored to the Ld. CIT(A) with a final opportunity granted to the assessee to explain the source of the cash deposit. Failure to comply would result in appropriate action. The Tribunal emphasized the necessity of a detailed order based on facts and law. The appeal was allowed, and the order was pronounced in open court on 07/01/2021.
Issues: Appeal against ex parte order sustaining addition under section 69A of the Income Tax Act 1961.
Analysis: The appeal was filed by the assessee against the ex parte order passed by the Ld. CIT(A) sustaining the addition of Rs. 12,76,000 made by the AO under section 69A of the Income Tax Act for the assessment year 2010-11. The case was reopened based on information that the assessee had made a cash deposit in his savings bank account. Despite multiple notices and opportunities, the assessee failed to comply with providing explanations regarding the source of the cash deposit. The AO completed the assessment by making the addition under section 69A to the returned income of the assessee.
The Ld. CIT(A) passed an ex parte order sustaining the addition as the assessee did not comply despite three opportunities granted. The assessee, aggrieved by this order, appealed before the Tribunal. However, during the appeal proceedings, none appeared on behalf of the assessee despite notice. The Ld. CIT(A) had sent multiple notices, and in line with legal precedents, dismissed the appeal for non-prosecution. The order of the Ld. CIT(A) was found to be cryptic in sustaining the addition made by the AO.
In the interest of justice, the Tribunal deemed it appropriate to restore the issue to the file of the Ld. CIT(A) with a direction to grant one final opportunity to the assessee to substantiate the case. The assessee was directed to appear before the Ld. CIT(A) and explain the source of the cash deposit failing which appropriate action could be taken. The Tribunal allowed the appeal of the assessee for statistical purposes, emphasizing the need for a speaking order based on facts and law.
Ultimately, the appeal filed by the assessee was allowed for statistical purposes, and the order was pronounced in the open court on 07/01/2021.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
