Assessee Deposited Cash from Earlier Withdrawals: ITAT quashes Rs. 9.84 Lakh Income Additions

The Income Tax Appellate Tribunal (ITAT) quashed income additions of ₹9.84 lakh against a Canara Bank employee and national hockey player, Bharat Kumar Chetri. The case involved cash deposits made in Chetri’s bank account, which the tax authorities treated as undisclosed income. Chetri argued that the deposits were from earlier withdrawals. The ITAT found that the initial notice was not issued in accordance with the law, rendering all subsequent actions invalid. This ruling emphasizes the importance of adhering to procedural requirements in tax assessments and provides relief to taxpayers by reinforcing the necessity for due process.