TaxTMI 
TaxTMI 
2025 (11) TMI 895
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....s) during the demonetization period but had not filed the return of income, it was revealed that the assessee under appeal had deposited cash of Rs. 10,00,000/- in his Bank Account No. 13300100003674 maintained with Bank of Baroda during the period from 09.11.2016 to 30.12.2016. The Assessing Officer (AO) also noticed that the assessee had also deposited an amount of Rs. 3,08,517/- during the year under consideration. The Assessing Officer (AO) issued statutory notices to the assessee. However, the assessee did not respond to the notices issued by the AO. The AO, therefore, proceeded to complete the assessment on the basis of Best Judgment Assessment, after issuing show cause notice to the assessee. While completing the assessment under sec....
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....grounds of appeal: 1. That the Learned Commissioner of Income Tax (Appeals), NFAC, Delhi has been wrong in law and on facts in confirming the addition of Rs. 1308517/- U/s 69A r.w.s. 1158BE of the I.T. Act, 1961 as under: - Rs. 10,00,000/- being cash deposit in bank during demonetization period out of sale proceeds of agricultural land. Rs. 1,50,000/- being cash deposit in bank during the year out of sale proceeds of agricultural land. Rs. 1,50,000/- being transferred from her C/C account during the year. Rs. 8,517/- being interest credited during the year. Rs. 13,08,517/- 2. That the addition of Rs. 13,08,517/- made by the Learned Assessing Officer, Ward 1(3)(4), Kanpur U/s 69A of the ....
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....return of income for the captioned assessment year. The Ld. A.R. further submitted that, thereafter, the provisions of section 144 of the Act were invoked and the assessment of the assessee was completed after making an addition of Rs. 13,08,517/- under section 69A of the Act being total credit entries (including cash deposits) during the demonetization period in the bank account of the assessee. The Ld. A.R. submitted that admittedly there was non-compliance on the part of the assessee due to her critical medical condition but the action of the Department in issuing notice under section 142(1) of the Act on 09.03.2018 was in direct contravention of the Instruction issued by the Department regarding "SOP for issuance of notice under section....
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....Ahmedabad Bench in the case of Sudhirbhai Pravinkant Thaker vs. Income-tax Officer, Ward 5(1), Ahmedabad reported in [2015] 44 ITR(Trib.) 135, wherein it was held that where the assessee had demonstrated that he had withdrawn cash from bank and there was no finding by the authorities below that this cash available with the assessee was invested or utilized for any other purpose, it was not open to the lower authorities to make addition on the basis that the assessee had failed to explain the source of deposits. Reliance was also placed on another order of the ITAT Jaipur Bench in the case of Shri Sunil Mathur, Kota vs. ITO, Ward 2(4), Kota in ITA No. 660/JP/2019, wherein, vide order dated 01.11.2011, the addition on account of alleged unexp....
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....ation under "Operation Clean Money', a list of assessees who had deposited substantial Cash in bank account(s) during the demonetisation period (8th November, 2016 to 30th December, 2016) but have not yet filed Income-tax return for Assessment Year 2017-18 till date has been generated for further follow up action by the Income-tax Department. (2) The list of such Non-Filers of income-tax returns is being made available in a phased manner to the jurisdictional income-tax authorities in AIMS module of ITBA under "Notice u/s 142(1) for AY 2017-18". (3) These cases would be handled as per the following Standard Operating Procedure ('SoP'): (i) While Government PANs (using 4th character) have not been flagg....
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....ture, information should be captured in the system by selecting the appropriate option in ITBA. However, where notice could not be served even by affixture because of fictitious/non-existent address, this information should also be captured in the system against the appropriate option available in ITBA. (4) All information regarding date(s) of service of notice u/s 142(1) upon the addressee has to be captured using the functionality provided in ITBA for this purpose. The process of service of notice under section 142(1) should be completed by 31st December, 2017. 5.1 A perusal of the last paragraph, i.e., paragraph 4 in the above said letter, specifically lays down that the process of service of notice under section 142(1) of th....