Unexplained Cash Deposits and Status of Resident Not Verified on Merits: ITAT Remands ₹117 Crore Addition

The Income Tax Appellate Tribunal (ITAT) remanded a case involving unexplained cash deposits amounting to ₹117 crore after finding that the Assessing Officer failed to verify the taxpayer’s residential status and merits of the case. The order emphasizes that additions made without detailed factual verification and independent inquiry cannot be sustained. The ITAT directed the lower authority to re-examine all relevant records, taxpayer’s residency, and the genuineness of deposits before re-adjudication. The ruling reinforces the principle of proper inquiry and fair opportunity in income-tax assessments involving large cash transactions.