2025 (7) TMI 109 - AT - Income Tax

Jurisdiction AO u/s.147 r.w.s. 148 - Addition of cash deposits as unexplained money - HELD THAT - We are of the view that since there was no return of income filed by the assessee the AO was correct in assuming the jurisdiction over the case of the assessee. So far as the merits of the case are concerned we are of the view that the matter requires fresh consideration at the end of the AO in the light of the voluminous evidences filed by the assessee before us. Therefore in the interest of justice we restore this matter to the file of the AO for examining afresh. Needless to say the AO shall afford meaningful opportunity of being heard to the assessee. Appeal filed by the assessee is allowed for statistical purposes.

Summary

The Appellate Tribunal (ITAT Cochin) addressed an appeal concerning assessment year 2018-2019 involving a limited liability partnership that deposited Rs.5,78,00,745 in cash without filing a return of income under section 139(1). The Assessing Officer (AO) reopened the case under section 147 and added the cash deposits as unexplained income due to the assessee's non-compliance and absence of representation. The Commissioner of Income-tax (Appeals) [CIT(A)] dismissed the appeal ex parte for non-compliance with hearing notices and upheld the AO's jurisdiction under sections 147 read with 148.The assessee challenged the jurisdiction and asserted non-receipt of hearing notices before the CIT(A). The Tribunal held that the AO rightly assumed jurisdiction since no return was filed. However, considering the assessee submitted additional evidence explaining the cash source under Rule 29, the Tribunal found the matter warranted fresh examination on merits. The case was therefore restored to the AO with directions to provide the assessee a meaningful opportunity of being heard.The Tribunal concluded by allowing the appeal for statistical purposes, emphasizing the need for fresh adjudication in the interest of justice.