Head Notes: |
Return filing is a serious business and reporting error cannot be claimed lightly.
1. The assessee had made huge cash deposits in different bank accounts.
2. During assessment-proceeding, the assessee claimed that the cash-deposits were made out of the opening cash-balance available with him.
3. Ld. AO perused the return of income of the immediately
preceding year held by department on record and observed that the
assessee had declared “Nil” cash balance as on 31st march of preceding year in the return of income.
4. When this fact was confronted to the assessee, it was submitted by him that the
reporting of “Nil” cash balance was just a reporting- error, but the assessee
was factually having cash-balance as claimed by him during the assessment.
5. Accordingly the AO held that when the assessee had ‘NIL’ cash balance on 31st march of one year as shown in return, the assessee cannot have huge cash balance on very next date i.e. 1st April of next year as claimed by him during the assessment and therefore the cash deposits were unexplained.
5. The CIT (A) accepted the submissions of the assessee and deleted the additions.
6.That against the order of CIT(A) revenue filed an appeal before ITAT
7. Before the ITAT it was again submitted on behalf of the assessee that the reporting of “Nil” cash balance was just a reporting- error, but the assessee
was factually having cash-balance as claimed.
8. The Tribunal while setting aside the order of CIT(A) Held:
a) The ITR is a sacred document prescribed in law and reporting-error cannot be pleaded so
lightly
b) The prescribed forms of ITR have suitable columns to furnish the details of cash-balance, This law procedure has been in statute for several years and nobody can dispute it.
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