ITAT Ahmedabad Remands ₹97 Lakh Cash Deposit Case, Imposes Cost on Assessee

The ITAT Ahmedabad has set aside an addition of ₹97.35 lakh made on account of unexplained cash deposits, giving the assessee another opportunity to present evidence.

The Tribunal observed that the addition was largely due to the assessee’s non-compliance and failure to submit documents earlier, and held that the matter required fresh examination by the Assessing Officer.

The assessee had claimed that the deposits were business-related transactions as a sub-dealer.

While granting relief, the Tribunal imposed a cost of ₹10,000 on the assessee for lack of cooperation, stressing the importance of timely compliance in tax proceedings.

[Firoj Sabbirmohmmad Moravala v. Income Tax Officer]