The ITAT, an Appellate Tribunal, ruled on unexplained cash ...

Unexplained cash deposits in bank accounts opened by CA using fake documents not linked to assessee - Appellant wins case against wrongful additions

Case Laws     Income Tax

June 26, 2024

The ITAT, an Appellate Tribunal, ruled on unexplained cash deposits in bank accounts opened by a CA misusing KYC documents. The CA, acting fraudulently, used the taxpayer's ID to open accounts, obtain loans, and acquire properties. Following a Rs. 2000 cr fraud discovery, involving multiple arrests, it was found that the CA was the mastermind. The Tribunal held that the additions to the taxpayer's account were unjustified, as the CA was responsible for the transactions. The AO failed to verify key forms and neglected to summon relevant parties. The taxpayer successfully demonstrated that the accounts were not theirs, leading to a decision in their favor. The cash deposits were attributed to the CA, exonerating the taxpayer.

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