ITAT Restores Case to CIT(A) for Reconsideration of Rs. 13.35 Lakh Unexplained Cash Deposits due to Non-Consideration of Assessee’s Evidence

ITAT restored a case to the CIT(A) for reconsideration of ₹13.35 lakh in unexplained cash deposits, citing the non-consideration of evidence provided by the assessee. The taxpayer argued that legitimate explanations and supporting documents were ignored during the assessment process. ITAT directed the CIT(A) to evaluate the evidence afresh and ensure procedural fairness in adjudication. This ruling highlights the judiciary’s emphasis on giving taxpayers an adequate opportunity to present their case and ensuring assessments are conducted fairly. Tax experts view this as a reminder for assessing authorities to adhere to due diligence and procedural correctness in avoiding unwarranted tax demands.