Shahjad vs ITO

Parties Involved

Facts Summary

The appeal was filed by the assessee, Shahjad, against the First Appellate order dated 28.03.2024 passed by the Commissioner of Income Tax (A), National Faceless Appeal Centre, Delhi, arising from the assessment order dated 24.03.2022. The assessee challenged the additions of INR 1,37,81,029/- made by the Assessing Officer (AO) towards unexplained cash deposits in his bank account(s). Notice under section 148 was issued to the assessee requiring him to file the return of income on discovery of large cash deposits. The assessee did not file the return within the stipulated time, leading to proceedings under section 142(1). The assessee eventually filed the return on 21.12.2021, but the assessment proceedings were already initiated. The assessee claimed that the cash deposits represented proceeds from his dairy and milk supply business, but there was no evidence to support this claim.…

Legal Issues

• 1. Whether the notice under section 143(2) was required to be served on the assessee before initiating the assessment proceedings.
• 2. Whether the cash deposits represent income of the assessee.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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