INCOME TAX ACT, 1961

Section 69

Income from undisclosed sources - Unexplained cash deposit in bank account - Notice claimed to be issued under section 142(1) by AO but no evidence regarding service of the same to assessee -

Pursuant to AIR information, AO found out that assessee maintained saving bank account having cash deposits of Rs. 51,49,900. AO treated the cash deposits as undisclosed turnover and estimated the profit as per section 44AD. Thereafter, case was taken up for revision under section 263 and in pursuance to the direction of Pr. CIT, AO framed assessment under section 263/144 and made the addition of Rs. 51,49,900 under section 69 as the assessee had failed to explain the source of cash deposit in his undisclosed bank account. Held: AO stated that he issued notice under section 142(1) but there was no mention therein that it was served on the assessee and other several notices were also served. In absence of specific mention regarding the service of such notices, it was safe to presume that the assessee was not allowed due opportunity of hearing for explaining and substantiating his stand before AO. Since assessee should be given an opportunity to discharge the burden lay on his shoulder that account belonged to one P, which was not given by AO, therefore, ends of justice would meet if assessee is provided due opportunity of explaining his stand and explanation given before Investigation Wing.

REFERRED : Smt. Renu Agrawal v. ITO (2012) 22 Taxmann.com 94 (Agra)(TM).

FAVOUR : Matter remanded.

A.Y. : 2011-12

SUBSCRIBE FOR FULL CONTENT

OR Try Reload the Page