In case of any additional evidence matter should be restored to the file of the AO

Last updated: 13 September 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Briefly stated, the facts of the case are that the assessee filed his return for AY 2006-07 on 31.3.2007 declaring an income of Rs.2,45,570 and the return was processed and subsequently selected for scrutiny on the basis of AIR information received. The Assessing Officer issued a show cause notice to explain the source of the payment of cash deposited in the bank account of Rs. 91,08,000/- . Despite several opportunities, the assessee did not support the assessment proceedings and the Assessing Officer had no other alternative but to decide the case on merits u/s 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on the basis of material available on record following the principle of best judgement. The Assessing Officer noted that in the absence of any details, source of information pertaining to the cash deposited by the assessee in his HDFC bank account, Defence Colony, New Delhi Branch on different dates and the same was treated as income of the assessee from undisclosed sources and the same was added to the returned income of the assessee.

Citation :
Income Tax officer, Ward 31(1),C. R. Building, New Delhi.(Appellant) Vs Bhai Manjit Singh,28-A, Prithvi Raj Road,New Delhi. (PAN No. BBFPS2318A) (Respondent)