TaxTMI 
TaxTMI 
2026 (4) TMI 414
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.... Officer (A.O) failed to make a detailed inquiry and pass a speaking order and not considering the Standard Operating Procedure (SOP) issued by CBDT which needs to be followed while making additions in respect of cash deposits during demonetization especially when order is made under best judgment by giving a draft Assessment Order u/s 144 of the Income Tax Act and all the facts have been disclosed hence the section 69C under section 115BBE is not acceptable. 2. The appellant craves leave to add, alter, modify, delete any of the grounds of appeal." 2. At the very outset we noticed that there is delay of 50 days and in this regard assessee had filed a detailed affidavit, the same is reproduced herein below: Affidavit I, Mr. Rashmikant Kuvadia, the Power of Attorney holder of Mr. Jamshed Naval Karanjia, an Indian inhabitent, aged about 66 years, having office at 11-12, Bibi Mansion, Prabhat Colony, Santacruz East, Mumbai 400 055, do hereby on solemn affirmation state as under: - 1. That, the Appellate Order dated 24.01.2025 passed by Ld. CIT(A) for the impugned Assessment Year 2017-18 was served on 24.01.2025. Thus, the last date for filing the appeal befor....
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.... raised by the assessee on merits 4. The solitary ground raised by the assessee relates to challenging the order of the Ld. CIT(A) in upholding the addition of Rs. 6,70,000/-. We have heard the counsel for both parties, perused the material placed on record, the judgments cited before us, and the orders passed by the Revenue Authorities. 5. From the records, we notice that during the year under consideration, the assessee did not file her return of income. During the course of online verification under "Operation Clean Money", data analytics and information gathered revealed that the assessee had deposited cash of Rs. 14,00,000/- during the demonetisation period. Accordingly, additions were made under Section 69A of the Act on account of unexplained income. 6. During the course of appellate proceedings, the additions were restricted to Rs. 6,70,000/-, as the assessee could not prove the nature of the cash deposit. In this regard, the assessee relied upon written submissions filed before the Ld. CIT(A), which are reproduced herein below: 5.1 During the appellate proceedings, the appellant has filed a written submission addressed to NFAC, Delhi dated 21.10.2021, whi....
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....ited substantial Cash in bank account(a) during the demonetisation period and accordingly has issued various notices and thereafter Order was passed under section 144 of the income Tax Act, 1961. A copy of which was served online and we quote from the said order as under "on the basis of data analytics and information gathered during the phase of online verification under "Operation Clean Money The income tax Department gathered a list of assessee who had deposited substantial Cash in bank account(s) during the demonetisation period (9th November, 2016 to 30th December, 2016) but have not filed Income Tax Return for A.Y 2017-2018 The data reveals that the Appellant had deposited cash of Rs. 7,30,000/- in Account no 14410022141 and Rs. 6,70,000 in account No. 1441025030, totaling Rs 14,00,000/- maintained with Dena Bank (now known as Bank of Baroda), Bandra branch, Mumbai. The then Assessing Officer, the ITO Ward 22(1)(4), Mumbai issued Notice us 142(1) of the Income Tax Act, 1961, requesting to furnish the copy of Return of Income 1. The case was received on transfer from the errestwhile in response to the Notices maintained a recalcitrant attitude and failed to r....
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.... deposit of Rs. 74,05,730 of both banks, however the Appellant has deposited Rs. 6,70,000/- from his known source of income and the other account No 14410022141 does not belong to the appellant but to his wife Mrs. Rebecca Jamshed Karanjia as detailed in statement of facts mentioned subsequently Additional ground of appeal The Ld. A.O. has erred in passing an order u/s 144 without issuing draft assessment order under section 1440 to applicable a Non Resident assessee. Section 144 C reads as under and starts with a non-obstante clause. 144C. Reference to dispute resolution panel (1) The Assessing Officer shall, notwithstanding anything to the contrary contained in this Act, in the first instance, forward a draft of the proposed order of assessment (hereafter in this section referred to as the draft order) to the eligible assessee if he proposes to make, on or after the 1st day of October, 2009, any variation in the income or loss returned which is prejudicial to the interest of such assessee. (2) On receipt of the draft order, the eligible assessee shall, within thirty days of the receipt by him of the draft order,- (a) file his ....