Can't Fault AO's Estimation Of Undisclosed Deposits In Foreign Bank When Assessee Fails To Produce Account Statement: Delhi HC

The Delhi High Court ruled that it cannot fault the Assessing Officer’s (AO) estimation of undisclosed deposits in a foreign bank when the assessee fails to produce the account statement. The case involved an assessee who was aggrieved by a demand of ₹50,00,000 for unexplained credit in an undisclosed account at Barclays Bank in London. The court noted that the AO was within his rights to estimate the deposits based on the assessee’s income profile. The court directed the AO to re-examine the matter if the assessee produces the relevant bank statements within twelve weeks. If not, the ITAT’s order would stand confirmed.