2025 (6) TMI 1830 - AT - Income Tax

Unexplained cash credit - sums deposited by assessee in the bank account during demonetization period - AO conducted inquiries u/s.133(6) from the concerned banks and also sought explanation of the assessee with respect to the source of this amount - HELD THAT - The arguments advanced by the assessee that the customers have deposited these amounts directly in the bank account of the assessee is not supported with any documentary evidences. The assessee has also failed to provide any details vis- -vis goods supplied to the so called customers who have deposited the amount in the bank account of the assessee. Assessee has placed on record certain additional evidences before us under Rule 29 of the Income Tax Rules 1962. We remit this matter back to the file of the AO for examining the case de novo in accordance with law needless to say that the AO will afford a reasonable opportunity of being heard to the assessee. Appeal filed by the assessee is allowed for statistical purposes.

Summary

The Appellate Tribunal (ITAT Cochin) heard the appeal arising from the National Faceless Appeal Centre/CIT(A) order dated 27.03.2024 for AY 2017-18, concerning unexplained cash credit additions under section 68 of the Income-tax Act, 1961. The Assessing Officer (AO) added Rs. 1,35,52,459/- as unexplained cash credit for cash deposits made during the demonetization period, which the CIT(A) partly sustained at Rs. 51,69,000/-. The assessee contended that these deposits were made by customers and thus explained. However, the ITAT found the assessee's claim unsupported by documentary evidence or details of goods supplied. The assessee submitted additional evidence under Rule 29 of the Income Tax Rules, 1962. The ITAT remitted the matter to the AO for a de novo examination, directing that a reasonable opportunity of hearing be provided to the assessee. The appeal was allowed for statistical purposes.