Aulad Husain vs. Commissioner of Income Tax

Parties Involved

Facts Summary

During the course of operation 'Clean Money', the Income Tax Department gathered a list of assessee’s who had deposited substantial cash in bank accounts during the demonetization period but had not filed returns for the assessment year 2017-18. The assessee, Sh. Aulad Husain, had deposited cash amounting to Rs.14,90,900/- in his bank accounts during the demonetization period. The Assessing Officer issued a notice under section 142(1) but this did not meet with compliance. He, therefore, invoked the provisions of section 144 to make a best judgment assessment upon the assessee. The Assessing Officer held that in view of the lack of explanation submitted by the assessee, the amounts were fit to be treated as unexplained money under section 69A of the Income Tax Act, 1961. He, therefore, added the amount of Rs.14,90,900/- back to the income of the assessee. The assessee went in appeals to the Commissioner of Income Tax (Appeals), Faizabad. The Commissioner of Income Tax (Appeals) dismissed the appeal for non-prosecution. The assessee has filed the present appeal. The Tribunal has restored the matter to the file of the Assessing Officer for examination of the accounts of the assessee and to take a fresh decision on the matter after considering the explanations offered by the assessee.…

Legal Issues

• 1. Whether the addition under section 69A was justified?
• 2. Whether the assessee should be given an opportunity to present the case properly with proper explanation and supporting evidences?

Judgment Outcome

Decided in favour of Assessee.

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