ITAT Amritsar Directs Fresh Verification Of Rs. 1.03 Crore Deposits By Jewellery Company During Demonetisation

The Amritsar Bench of the Income Tax Appellate Tribunal (ITAT) last month remanded a demonetisation-related reassessment case to the Assessing Officer for fresh verification of purchase bills, sale bills, and receipt vouchers that were not examined at the assessment stage.

A Bench comprising Manoj Kumar Aggarwal, Accountant Member, and Udayan Dasgupta, Judicial Member was hearing an appeal by Chand Jewellers, a partnership firm engaged in gold jewellery business against the confirmation of an addition of Rs. 1.03 crore as "unexplained cash deposits" during the demonetisation period.

During the proceedings, the taxpayer's counsel admitted that the sale bills, purchase bills, and receipt vouchers relating to the impugned transactions were not part of the assessment record and had not been produced before the Assessing Officer. Further, that these documents had also not been examined during reassessment proceedings.

The Tribunal set aside the orders of the lower authorities, noting that supporting documentary evidence had to be examined at the ground level for authenticity and genuineness, rather than being produced for the first time at the appellate stage.

Accordingly, the Tribunal remanded the matter to the Assessing Officer for fresh assessment. However, it clarified that it did not express any opinion on the merits of the case and left all legal issues open.

Counsel for Appellant: Amit Bajaj

Counsel for Respondent: Charan Dass