Addition of Rs. 2.25 Crores on Unexplained Cash Deposits: ITAT directs De Novo Hearing

The Income Tax Appellate Tribunal (ITAT) directed a de novo hearing regarding the addition of ₹2.25 crores on unexplained cash deposits. The case involved a taxpayer who had made large cash deposits in their account, which the tax authorities could not satisfactorily explain. The ITAT noted that the Assessing Officer had failed to properly evaluate the evidence presented by the taxpayer. Therefore, the ITAT remanded the case back to the Assessing Officer, ordering a fresh hearing with proper consideration of the available evidence. This ruling highlights the importance of thorough examination and fair hearing in cases involving unexplained cash deposits to ensure that assessments are made based on clear and convincing evidence.