Vasant Hirachand Rathod Vs ITO

Parties Involved

Facts Summary

The assessee, Vasant Hirachand Rathod, filed his return of income declaring total income at ₹3,87,570/- on 30/07/2017. The return was selected for scrutiny due to abnormal cash deposits during the demonetisation period. The Income Tax Officer treated the unexplained cash deposits as unexplained money under section 69A of the Income-tax Act, 1961, and assessed the tax accordingly. The first appellate authority upheld the order of assessment. The assessee appealed to the Tribunal on the grounds that the assessment was framed without issuing a show cause notice and that the return was filed under presumptive taxation. The Tribunal considered the arguments and found that the assessee failed to provide satisfactory evidence to substantiate the cash deposits. The Tribunal allowed the appeal in part and remanded the matter to the first appellate authority to verify the nature and source of the cash sales with specific documents.…

Legal Issues

• 1. Assessment was framed without issuing a show cause notice.
• 2. The assessment was framed disregarding the submission that the return was filed under presumptive taxation.

Judgment Outcome

Decided in favour of Partly Assessee.

Precedents Relied Upon

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