INCOME TAX ACT, 1961

Section 69A

Income from undisclosed sources - Addition under section 69A - Cash deposits in bank account - Evidences filed by assessee neither examined by AO nor by CIT(A)

As assessee could not substantiate cash deposits into his bank account, AO treated the same as unexplained deposits and made addition under section 69A CIT(A) confirmed addition. Assessee submitted that he has filed all the required documents during the course of assessment proceedings as well as before CIT(A). However, both the authorities neither considered documents filed by assessee nor took into consideration the submissions of the assessee properly. Held: CIT(A) himself mentioned that assessee filed certain additional evidence with regard to the sources of cash in hand, opening balance of cash, gifts received in cash from mother of assessee and also a gift from brother of the assessee. Also, when documents filed by assessee were forwarded to AO for remand report, then it was duty of AO to examine the documents and give report properly. Thus, issue of cash deposits as confirmed by CIT(A) required verification and examination on the part of AO after considering submissions of assessee and documents to be furnished by assessee. Accordingly, matter was remanded to AO to re-consider the claim of assessee.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2010-11

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