DIPAK PARMAR,AHMEDABAD V. INCOME TAX OFFICER, BHARUCH

ITA 178/SRT/2024

AI Insights

The case involves Dipak Parmar, who appealed against the order of the Commissioner of Income Tax (Appeals) confirming an addition of Rs.6,16,142 to his income for the assessment year 2017-18 under section 69A of the Income-tax Act, 1961. The addition was made by the Assessing Officer due to the assessee's failure to explain the source of cash payments amounting to Rs.6,16,142 used for credit card purchases. Despite multiple notices and opportunities to explain, the assessee did not respond, leading both the AO and CIT(A) to confirm the addition. The Tribunal, after reviewing the case, upheld the CIT(A)'s decision, noting the assessee's continued non-compliance and lack of explanation.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473299 (ITAT-SURAT)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-11-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 18-11-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 17-02-2024
• Other Referred Cases: Anil Goel vs. CIT, 306 ITR 212 (P & H), Popular Engineer Co. vs. ITAT, 248 ITR 577 (P & H)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MUKESH JAIN
• Section: 250; 69A

Judgement Text

" IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.178/SRT/2024 Assessment Year: (2017-18) (Physical Hearing) Dipak Parmar, 3-32, Darshan Apartment, Near Telephone Exchange, Naranpura, Gujarat - 380013 Vs. The ITO, Ward – 1(1), Bharuch èथायीलेखासं./जीआइआरसं./PAN/GIR No: BCBPP0990E (Appellant) (Respondent) Appellant by None Respondent by Shri Mukesh Jain, Sr. DR Date of Hearing 18/11/2024 Date of Pronouncement 19/11/2024 आदेश / O R D E R PER BIJAYANANDA PRUSETH, AM: This appeal by the assessee emanates from the order passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’) dated 18.12.2023 by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short, ‘CIT(A)’] for the assessment year (AY) 2017-18. 2. The grounds of appeal raised by the assessee are as under: “1. The Ld. CIT(A) erred in partially confirming the order of the AO making and addition u/s 69A of Rs.6,16,142/-. 2. Any other ground which may be urged before or during the time of hearing of the appeal.” 2 ITA No.178/SRT/2024/AY.2017-18 Dipak Parmar 3. At the outset, it may be stated that none appeared for the assessee on the dates of hearing fixed on 30.05.2024, 18.07.2024, 09.09.2024 and 18.11.2024. Hence, it is clear that adequate opportunity of hearing was granted to the appellant, but he has neither attended the hearings nor filed any written submission in support of the grounds raised in appeal. We are, therefore, of the view that no useful purpose will be served in prolonging the litigation. The appeal is, accordingly, decided on the basis of materials available on record. 4. Brief facts of the case are that assessee filed return of income for AY.2017-18 on 10.11.2017, declaring total income at Rs.2,78,400/-. The assessee had made cash payment towards credit card purchases of Rs.6,16,142/-. The Assessing Officer (in short, ‘AO’) asked the assessee to explain the source of the above cash payments. The AO also issued show cause notice which was not replied to by the assessee. Therefore, the AO held that the amount of cash payment of Rs.6,16,000/- remained unexplained and constitutes income of the assessee u/s 69A of the Act. He also held that tax on this income will be charged u/s 115BBE of the Act. 5. Aggrieved by the order of AO, the assessee filed appeal before the CIT(A). The CIT(A) issued 7 notices as per the details at para 4 of the appellate order. There was no response of the assessee to any of the notices. The assessee did not also file any written submission. Therefore, the CIT(A) was of the opinion that appellant is not willing to pursue the appeal. Accordingly, the CIT(A) decided the appeal based on materials available on record. He has given the 3 ITA No.178/SRT/2024/AY.2017-18 Dipak Parmar decision in para 5.3, 5.4 and 5.5 of the appellate order. The CIT(A) observed that there was no compliance of notices before AO as well. He also observed that assessee failed to explain the source of cash payment of Rs.6,16,000/- towards credit card purchases; hence, the impugned amount constitutes income in the hands of the assessee u/s 69A of the Act. The CIT(A) also relied on the order of Hon’ble Punjab & Haryana High Court, in case of Anil Goel vs. CIT, 306 ITR 212 (P & H) wherein relying on the earlier decision of the High Court in case of Popular Engineer Co. vs. ITAT, 248 ITR 577 (P & H), it was held that elaborate reasons need not be recorded by the CIT(A) as has been done by the AO. The reasons are required to be clear and explicit indicating that the authority has considered the issue in controversy. If the appellate / revisional authority has to affirm such an order, it is not required to give separate reasons, which may be required in case the order is to be reversed by the appellate / revisional authority. Accordingly, the CIT(A) dismissed the appeal of assessee. 6. Aggrieved by the order of CIT(A), the assessee filed appeal before the Tribunal. As stated earlier, neither any Authorized Representative of assessee attended before us nor any written submission was filed in support of the grounds raised in the appeal. It may be stated that there is only one effective ground i.e., addition of Rs.6,16,142/- u/s 69A of the Act. On the other hand, Learned Senior Departmental Representative of the revenue supported the orders of lower authorities. The assessee had made cash payments for credit card purchases i.e., Rs.3,37,650/- with RBL Bank Ltd., Rs.1,66,492/- with SBI 4 ITA No.178/SRT/2024/AY.2017-18 Dipak Parmar Cards and Payment Services Pvt. Ltd. and Rs.1,12,000/- with City Bank. Both AO and CIT(A) issued several notices but assessee chose not to respond to the notices nor file any written submission. Provisions of section 69A of the Act are clear. Where the assessee is found be the owner of any money, bullion, jewellery or other valuable articles and such money etc. are not recorded in the books of account, if any, maintained by him of any source of income and the assessee offers no explanation about the nature and source of acquisition of the money etc., or the explanation offered by him, is not satisfactory, in the opinion of AO, the money and the value of bullion, jewellery or other valuable articles may be deemed to be the income of the assessee for such year. In the present case, assessee has purchased the credit cards by making cash payments. It is, therefore, clear that assessee was owner of money (cash) which was used to make credit card purchases. However, he has not explained the nature and source of acquisition of such money, being cash, of Rs.6,16,142/-. The AO has added the same u/s 69A of the Act due to non-compliance by assessee to the statutory notices as well as the show cause notice. The CIT(A) has rightly confirmed the addition because assessee did not attend before him or filed any written submission in support of the grounds raised before him. Before us also, the assessee has not filed any written submission in support of the grounds raised by him. As discussed earlier, provisions of section 69A of the Act are clearly attracted to the facts of the instant appeal. Hence, the order of CIT(A) is upheld and appeal of the assessee is dismissed. 5 ITA No.178/SRT/2024/AY.2017-18 Dipak Parmar 7. In the result, the appeal of the assessee is dismissed. Order is pronounced in the open court on 19/11/2024. Sd/- Sd/- (PAWAN SINGH) (BIJAYANANDA PRUSETH) JUDICIAL MEMBER ACCOUNTANT MEMBER Surat Ǒदनांक/ Date: 19/11/2024 SAMANTA Copy of the Order forwarded to: 1. The Assessee 2. The Respondent 3. The CIT(A) 4. CIT 5. DR/AR, ITAT, Surat 6. Guard File By Order // TRUE COPY // Assistant Registrar/Sr. PS/PS ITAT, Surat "