ITAT Mumbai Judgement on cash deposit in a an account with Renuka mata Society
Let us have a Short Overview of the case:
A small mobile accessories retailer was alleged to have deposited ₹1,00,57,294/- in his bank account.
1.Facts didn’t justify the addition, police complaint ignored, key findings of investigation agencies and tribunal overlooked.
2.Favorable AU order obtained by the assessee on identical facts for later year ignored.
3.Non applicability of 69A since assessee has not derived any income. Cash alleged to have been deposited was immediately transferred to unknown parties by Renukamata. No independent verification undertaken.
4.Procedural issues such as non-issuance of 143(2) notice, initiation of proceedings u/s 147 instead of 153C, defect in information relied by the AO/AU.
Despite strong merits, the Faceless CIT(A) had dismissed the appeal solely on grounds of delay.
The bench condoned the delay, recognizing miscommunication in e-proceedings and held that dismissal without adjudicating on merits was contrary to natural justice and restored the matter to CIT(A).
Cost of ₹5,000 was imposed on the assessee for non-diligence highlighting the importance of proactive case tracking.
The copy of the order is as under:
