2023 (4) TMI 1166 - AT - Income Tax

Addition u/s 69A - cash deposit in the bank account by the assessee as unexplained money - HELD THAT - Assessee has earned tuition fees by providing tuition to various students and received cash in consideration of the same - supporting account books relevant vouchers and the documentary evidences were not considered during the course of assessment proceedings by the A.O. CIT(A) ought to have consider the material on record for adjudicating the issue contested in the appeal on merit. Section 250(6) contemplates that the first appellate authority would determine point in dispute and therefore record reason on such point in support of his conclusion. Therefore restore this case to the file of the ld. CIT(A) for adjudicating on merit after affording opportunity to the assessee. Appeal of the assessee is allowed for statistical purposes.

Summary

Issues involved: Appeal against addition made u/s 69A for unexplained cash deposit.

Summary:
The Appellate Tribunal ITAT Mumbai addressed the appeal concerning the addition of Rs.2,45,000/- u/s 69A of the Act as unexplained money due to cash deposit in the bank account by the assessee. The assessee had filed a return of income declaring total income of Rs.3,20,300/- and was subject to scrutiny assessment. The Assessing Officer (AO) observed cash deposits in the bank account and concluded that the deposited cash had no connection with tuition income, treating it as unexplained money u/s 69A. The assessee explained the cash as tuition fees received, supported by relevant vouchers and documents. The CIT(A) dismissed the appeal due to the assessee's non-attendance at the hearing. The Tribunal noted that the CIT(A) should have considered the material on record and reasons for the conclusion, as per Section 250(6), and remanded the case for adjudication on merit after providing the assessee an opportunity. The appeal was allowed for statistical purposes, directing the assessee to comply with the CIT(A) without failure.

In conclusion, the appeal was allowed for statistical purposes, and the order was pronounced on 31.03.2023.