Appeal Allowed for Unexplained Cash Deposits: Tribunal Remands Case for Re-evaluation

The Appellate Tribunal ITAT Mumbai allowed the appeal against the addition of Rs.2,45,000/- under section 69A as unexplained money due to cash deposits in the bank account. The Tribunal remanded the case for adjudication on merit, emphasizing the need for the CIT(A) to consider the material on record and reasons for the conclusion. The appeal was allowed for statistical purposes, with directions for the assessee to comply with the CIT(A) without failure.

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Issues involved: Appeal against addition made u/s 69A for unexplained cash deposit.

Summary:
The Appellate Tribunal ITAT Mumbai addressed the appeal concerning the addition of Rs.2,45,000/- u/s 69A of the Act as unexplained money due to cash deposit in the bank account by the assessee. The assessee had filed a return of income declaring total income of Rs.3,20,300/- and was subject to scrutiny assessment. The Assessing Officer (AO) observed cash deposits in the bank account and concluded that the deposited cash had no connection with tuition income, treating it as unexplained money u/s 69A. The assessee explained the cash as tuition fees received, supported by relevant vouchers and documents. The CIT(A) dismissed the appeal due to the assessee's non-attendance at the hearing. The Tribunal noted that the CIT(A) should have considered the material on record and reasons for the conclusion, as per Section 250(6), and remanded the case for adjudication on merit after providing the assessee an opportunity. The appeal was allowed for statistical purposes, directing the assessee to comply with the CIT(A) without failure.

In conclusion, the appeal was allowed for statistical purposes, and the order was pronounced on 31.03.2023.

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