Keshavlal Chaturdas Patel vs. ITO

Parties Involved

Facts Summary

The assessee, Keshavlal Chaturdas Patel, an individual engaged in agricultural activities, filed his return of income declaring a total income of Rs.2,73,260/-. The case was selected for scrutiny, and the Assessing Officer (AO) noted that the assessee had deposited cash amounting to Rs.12,10,000/- in his Bank of Baroda account during the demonetization period. The AO issued notices seeking details and explanations regarding the cash deposits, but the assessee failed to respond. A final show-cause notice was issued, specifying that the cash deposits should be explained, failing which the amount would be treated as unexplained income under Section 69A of the Act. Despite this, no response was received from the assessee. Considering the non-compliance and absence of any satisfactory explanation or documentary evidence, the AO proceeded to complete the assessment under Section 143(3) of the Act, determining the total income at Rs.14,83,260/- by treating the cash deposits of Rs.12,10,000/- as income from unexplained sources under Section 69A. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) (CIT(A)), but the appeal was dismissed. The assessee is now in appeal before the Income Tax Appellate Tribunal (ITAT) against the order of the CIT(A).…

Legal Issues

• 1. The order passed by NFAC, Delhi U/s 250 on 07/02/2024 dismissing the appeal is wholly illegal, unlawful and against the principles of natural justice.
• 2. The Id. NFAC has grievously erred in law and or on facts in upholding addition of Rs. 12,10,000/- towards cash deposited into bank account during demonetization period without hearing the appellant.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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• ITA No.4637/Del/2024