INCOME TAX ACT 1961

Section 69A

Income from undisclosed sources - Addition under section 69A - Unexplained source of cash deposit during demonetization period -

Assessee had not filed his return of income for the assessment year 2017-18. Subsequently, it filed his a return of income on 29-3-2019. Various opportunities afforded to assessee to furnish further details such as source for cash deposited during demonetization period with supportive evidences, cash flow statements, etc., but it had not responded. AO noticed that during the period of demonetization, assessee had made various deposits in various bank accounts and further noticed that the deposit received from the customers on various dates in old notes could not be accepted as genuine as assessee was not supposed to receive old currency as per the norms because furniture business which was doing by assessee does not fall under exemption category as given by the board. Thus, the total cash deposits of assessee were treated as unexplained income/money belong to assessee and added under section 69A. Held: In this case, admittedly, assessee had neither filed regular return of income under section 139 for the assessment year 2017-18 nor furnished complete details in response to various notices issued by AO. Moreover, there was no response to the notices issued by CIT(A) also or furnished any explanation/reply and thus, CIT(A) confirmed the assessment order. In view of the above, the assessee shall furnish complete details before AO and AO shall, after verification of details as may be filed by assessee, decide the issue afresh in accordance with law by affording reasonable opportunity of being heard to the assessee.

REFERRED :

FAVOUR : Matter remanded

A.Y. :

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