Bachan Lal vs. ITO

Parties Involved

Facts Summary

The assessee did not file any Income Tax Return for Assessment Year 2017-18. The Assessing Officer (AO) found that cash of Rs.10,23,600/- was deposited in the assessee’s bank account during the demonetization period. The AO issued a notice under section 142(1) of the Income Tax Act, 1961, requesting the assessee to file an Income Tax Return for the Assessment Year 2017-18. However, the assessee did not comply with the notice. The AO finalized the assessment ex-parte by treating the cash deposit of Rs.10,23,600/- as assessee’s unexplained money under section 69A of the Act. The assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), who dismissed the appeal. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT) on the grounds that the cash deposit was from withdrawals made for construction purposes and the source was explained. The ITAT found merit in the assessee’s appeal and deleted the addition made by the AO.…

Legal Issues

• 1. Whether the order of the Assessing Officer and the CIT(A) are against the facts of the case and untenable under the law?
• 2. Whether the CIT(A) appreciated the facts of the case and confirmed the addition without applying his mind?
• 3. Whether the AO grossly erred in assessing the total income at Rs. 10,23,600/- on account of unexplained cash deposit?
• 4. Whether the source of the deposits is explained and the addition under section 69A is called for?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Jagdish Chandra Dhariwal vs. ACIT

  Jodhpur bench

• Shri Gurtejpal Singh Somal Vs Income Tax Officer, Ward-20(3)(4), Mumbai

  Mumbai bench

• Seema Devi Jain Vs. ACIT

  Delhi Bench ‘G’ New Delhi benchAY 2017-18Allowed

• VED PRAKASH VS. ITO, WARD 3, REWARI HARYANA

  DELHI BENCH benchAY 2017-18Allowed

• Pinkeshkumar Melapchand Shah Vs. The ITO, Ward-2(2)(4) Ahmedabad

  Ahmedabad bench

• Purnima Priyadarshi Vs. ITO, Ward-2(3), Biharsharif

  Patna Bench at Kolkata benchAY 2017-18Allowed