Cash deposit additions during demonetisation remanded for fresh adjudication after inadequate participation and hearing opportunity

Cash deposits made during the demonetisation period were treated as unexplained, but the assessee had not effectively participated before the tax authorities. To advance substantial justice and ensure proper hearing, the appellate order and the assessment order were set aside, and the matter was restored to the Assessing Officer for fresh adjudication after granting adequate opportunity of hearing. The additions were therefore not finally sustained and the dispute was remanded for reconsideration.

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Issues: Whether the additions made on account of cash deposits and the appellate order sustaining them should be set aside and the matter remanded for fresh adjudication.

Analysis: The assessee was stated to be running a mother dairy booth and had not effectively participated before the departmental authorities. The dispute concerned cash deposits made during the demonetization period, which were treated as unexplained by the Assessing Officer. In view of the factual circumstances and to advance substantial justice, the appellate order as well as the assessment order were set aside and the matter was restored to the Assessing Officer for fresh decision after granting adequate opportunity of hearing.

Conclusion: The issue was decided in favour of the assessee to the extent that the additions were not finally sustained and the matter was remanded for fresh consideration.

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