ITAT Remands Rs 1.85 Crore Cash Deposit Dispute to CIT(A) for Fresh Adjudication After Assessee Claims Funds Were Converted From Euros Brought From Paris:

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has sent back a tax dispute involving assessee Kanhiya Lal Gautam to the CIT(A) for fresh consideration.

The case relates to Assessment Year 2017-18. The AO had passed an ex-parte assessment order under section 144 of the Income Tax Act on the failure of the assessee to appear during the assessment proceedings. The AO had also added Rs 1.85 crore under Section 69 of the Income Tax Act.

The main dispute was regarding a cash deposits in the bank account of the assessee. The assessee stated that the money was from Euros brought from Paris and was converted into Indian currency in India. However, in the earlier proceedings, the assessee has not produced any documentary evidence in support of this contention.

The CIT(A) also observed that the assessee had not produced sufficient documents to prove his non-resident status and details of his activities outside India. It was further observed that he had not filed an income-tax return in any foreign country.

Before the ITAT, the assessee submitted that he had now got evidence and documents in support of his claim. The Departmental Representative, however, supported the orders passed by the lower authorities.

On giving a hearing to both the sides, the ITAT held that the matter requires to be re-considered. The Tribunal directed the CIT(A) to provide a reasonable opportunity of being heard and examine the relevant documents to the assessee before passing the fresh order.

The Tribunal also directed the assessee to produce all relevant details and supporting documents within the stipulated time.

Accordingly, the ITAT remanded the matter back to the CIT(A) for fresh adjudication. The appeal was therefore allowed for statistical purposes.