#Cash Deposits

ITAT Delhi sets aside an ex-parte assessment order for failing to provide the assessee a genuine chance to respond to notices, emphasizing that procedural fairness under natural justice is non-negotiable even in tax proceedings. The ruling mandates de-novo proceedings, reinforcing that mechanical compliance with notice issuance does not suffice to uphold an ex-parte order.

ITAT Delhi quashed a reassessment under Section 147 where the Assessing Officer deviated from the recorded reasons for reopening, failing to make additions on that basis. The ruling reinforces that reassessment proceedings must strictly align with the grounds cited for reopening, or risk invalidation.

ITAT Kolkata quashes addition under Section 69A where the Assessing Officer relied on mere arithmetic differences without examining supporting documents. The ruling reinforces that unexplained credits must be analyzed contextually, not just numerically, to uphold natural justice in tax assessments.

ITAT Delhi sets a precedent by limiting unexplained cash deposit additions to 5% under Section 69A IT Act when the assessee partially substantiates the source. The ruling mandates proportionate assessment, offering relief to taxpayers facing arbitrary additions on unverified deposits.