The ITAT held that once the AO found the issue of cash deposit ...

ITAT rules AO loses jurisdiction for further additions once initial cash deposit issue u/s 147 is resolved.

January 10, 2025

Case Laws     Income Tax     AT

The ITAT held that once the AO found the issue of cash deposit into the assessee's bank account, for which reassessment proceedings were initiated u/s 147, was satisfactorily explained, he lost jurisdiction to make any other additions or disallowances. As the reason for reopening the assessment did not subsist, the AO was required to pass a nil order and any further additions made were illegal. Consequently, the other disallowances u/ss 56 and 80P were held unlawful, and the assessee's appeal was allowed.

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