Tribunal emphasizes compliance with tax assessment procedures, directs assessee to provide complete details for fair decision.

The Tribunal allowed the appeal for statistical purposes, emphasizing the importance of complying with assessment procedures and providing necessary details to tax authorities for a fair determination of tax liabilities. The judgment highlighted the need for proper responses to notices and the opportunity for the assessee to present their case effectively before the authorities. The Tribunal directed the assessee to furnish complete details to the Assessing Officer for a fresh decision, stressing compliance with the law and fair hearing for the assessee.

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Issues:
Assessment under section 144 r.w.s. 144(1)(b) of the Income Tax Act for the assessment year 2017-18 based on unexplained cash deposits during demonetization period and failure to file a timely return of income.

Analysis:
The appeal was filed against the order of the Ld. Commissioner of Income Tax (Appeals) regarding the assessment year 2017-18. The Assessing Officer noted multiple cash deposits during demonetization in the assessee's bank accounts and issued a notice under section 142(1) of the Income Tax Act, 1961. Despite various opportunities, the assessee failed to file a timely return of income. The belated return declared a gross total income of Rs. 4,49,148/-. The Assessing Officer considered the cash deposits, especially Rs. 5,34,000/-, as unexplained income under section 69A of the Act, leading to an estimated business turnover of Rs. 32,72,009/- and total income of Rs. 2,61,768/-. The Ld. CIT(A) confirmed the order due to the assessee's lack of response.

The assessee contended that the demonetized currency was handled within the stipulated time under the Specified Bank Notes Act, 2017. However, the Assessing Officer argued that the furniture business did not fall under the exemption category for old currency acceptance. The Tribunal observed the assessee's failure to file a regular return or provide complete details in response to notices, leading to confirmation of the assessment order by the Ld. CIT(A). The Tribunal directed the assessee to furnish complete details to the Assessing Officer for a fresh decision, emphasizing compliance with the law and providing a fair opportunity for the assessee to be heard.

In conclusion, the appeal was allowed for statistical purposes, highlighting the importance of complying with assessment procedures and providing necessary details to tax authorities for a fair determination of tax liabilities. The judgment emphasized the need for proper responses to notices and the opportunity for the assessee to present their case effectively before the authorities.

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