Kaushal Pravinkumar Shah Vs. ITO

Parties Involved

Facts Summary

The assessee filed his return of income for the Assessment Year 2017-18 on 25.01.2018 declaring income of Rs. 4,27,800/- from trading in chemicals. The case was selected for complete scrutiny due to large cash deposits during the demonetisation period and it being the first time the assessee filed a return. Notices under section 142(1) were issued, and the assessee provided submissions including claims of gifts from relatives and business transactions. The Assessing Officer concluded that the explanations were not acceptable and found that the claims of gifts and business transactions were non-genuine. The AO treated cash deposits as unexplained money under section 69A and made disallowances, assessing the total income at Rs. 66,98,675/-. The assessee appealed to the CIT(A), but the appeal was dismissed ex parte for non-compliance. The assessee then appealed to the ITAT.…

Legal Issues

• 1. Whether the CIT(A) erred in dismissing the appeal ex parte and confirming the assessment order with additions.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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