Shaikh Mahaboob Subhani, Bhubaneswar V. JCIT, Bhubaneswar

ITA 135/CTK/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7221 (ITAT-CUTTACK)
• Duration Of Justice: 2 year(s) 8 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 16-01-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 22-04-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D.K.PRADHAN
• Keywords: Unexplained cash credit; Principle of natural justice; Assessment record; Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 143(3); 92

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NOS.135 & 462 /CTK/2016 ASSESSMENT YEAR : 2009 - 2010 MR SHAIKH MAHABOOB SUBHANI, RABINDRANATH EDUCATION SOCIETY, OCHC COMPLEX, NEAR RAM MANDIR, ALAGAPPA UNIVERSITY, KHARVEL NAGAR, UNIT - 3, BHUBANESWAR. VS. JCIT, RANGE - 1, BHUBANESWAR. PAN/GIR NO. BCIPS 8775 D (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 1 6 /01/ 2017 DATE OF PRONOUNCEMENT : 16 /01/ 2017 O R D E R ITA NO.135/CTK/2014 IS FILED BY THE ASSESSEE AGAINST THE ORDER DATED 31.1.2014 OF LD CIT(A), BERHAMPUR FOR THE ASSESSMENT YEAR 2009 - 2010, IN THE MATTER OF ASSESSMENT UNDER SECTION 143(3) OF THE I.T.ACT, 1961. 2. IN THIS APPEAL, THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: THAT EVEN THOUGH IT IS CLEARLY A MATTER OF FACT AVAILABLE ON RECORD THAT THE IDENTITY OF THE TWO PERSONS FROM WHOM A TOTAL AMOUNT OF RS. 2, 46,579/= WAS RECEIVED 2 ITA NOS.135 & 462/CTK/2016 ASSESSMENT YEAR :2009 - 2010 AND THE PERIOD OF SUCH TRANSACT IONS ARE CLEARLY ESTABLISHED FROM THEIR WRITTEN CONFIRMATIONS HELD ON RECORD, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS), BERHAMPUR, CAMP - BHUBANESWAR HAS ERRED IN HOLDING AS UNEXPLAINED THE RECEIPTS OF RS. 2, 46,579/= AND AS SUCH HIS OBSERVATION BEIN G CONTRARY TO FACTS IS LIABLE TO BE SET ASIDE. 2. THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS), BERHAMPUR, CAMP - BHUBANESWAR HAS ERRED IN FRAMING HIS OBSERVATION ON IMPUG NED UNDISCLOSED RECEIPTS OF RS. 1,96,333/= BY RESORTING TO CASH BASIS OF AC COUNTING DISCARDING THE MERCANTILE BASIS OF ACCOUNTING ACTUALLY FOLLOWED BY THE APPELLANT AS EVIDENT FROM THE AUDITED ACCOUNTS HELD ON RECORD AND AS SUCH THE CLAIM OF THE APPELLANT THAT THIS AMOUNT DOES NOT REPRESENT ANY UNDISCLOSED INCOME MERITS VINDICATI ON CONTRARY TO THE OBSERVATION OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS), BERHAMPUR, CAMP - BHUBANESWAR. 3. THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND /OR RESCIND ANY OF THE ABOVE SUBMISSIONS MADE IN THE GROUNDS OF APPEAL AT THE TIME OF OR BEFORE THE HEARING OF THE APPEAL. 3. THE APPEAL WAS FIXED FOR HEARING ON 23.9.2015, 4.8.2016, 4.10.20 16, 17.10.2016, 22.11.2016, 23.12. 20 16, WHEN NONE APPEARED ON BEHALF OF THE ASSESSEE. THE CASE WAS FINALLY FIXED FOR HEARING ON 16.1.2017 WHEN A LSO THERE WAS NO COMPLIANCE FROM THE ASSESSEE. NOTICE OF HEARING FIXING THE HEARING OF THE APPEAL ON 16.1.2017 WAS SENT TO THE ASSESSEE THROUGH RPAD, WHICH WAS SERVED ON THE ASSESSE , AS EVIDENCED FROM THE ACKNOWLEDGEMENT CARD, PLACED ON RECORD . HENCE, I PROCEED TO DECIDE THE APPEAL OF THE ASSESSEE EXPARTE - QUA THE ASSESSEE AFTER HEARING THE LD D.R. AND CONSIDERING THE MATERIALS AVAILABLE ON RECORD. 3 ITA NOS.135 & 462/CTK/2016 ASSESSMENT YEAR :2009 - 2010 4. I FIND THAT THE LD CIT(A) HAS DISCUSSED AND DECIDED THE GROUNDS AS UNDER: GROUN D NO. 1 RELATES TO ADDITION OF RS. 9,96,579/ - TOWARDS UNEXPLAINED LOAN. 5.1 THE APPELLANT IS THE COORDINATOR ON BEHALF OF RABINDRANATH TAGORE EDUCATIONAL SOCIETY, ANDHRA PRADESH AND MANAGES THE STUDY CENTRE AT BHUBANESWAR ON BEHALF OF THE SAID SOCIETY. HE FI LED HIS RETURN OF INCOME FOR THE IMPUGNED ASSESSMENT YEAR ON 17.12.2009 DISCLOSING TOTAL INCOME OF RS. 1,70,210/ - . DURING THE SCRUTINY PROCEEDING, THE AO NOTICED THAT THE TOTAL DEPOSITS IN THE BANK ACCOUNT OF THE APPELLANT DURING THE YEAR WAS RS. 58,54,035/ - . ON BEING ASKED, THE APPELLANT EXPLAINED THE SOURCE OF DEPOSIT, THE DETAILS OF WHICH HAVE BEEN GIVEN AT PARA - 5 OF THE ASSESSMENT ORDER. THE APPELLANT STATED THAT APART FROM OTHER RECEIPTS, HE HAD RECEIVED AN AM OUNT OF RS. 9,96,579/ - AS LOANS FROM FRIENDS AND RELATIVES. HOWEVER, SINCE DETAILS OF THESE LOANS WERE NOT PRODUCED BEFORE THE AO, HE ADDED THE ENTIRE AMOUNT OF RS.9,96,579/ - AS UNEXPLAINED CREDIT. 5.2 IN A WRITTEN SUBMISSION FILED BEFORE THE CIT(A) - I, BHUBANESWAR, THE LD. AR HAD STATED AS UNDE R: ' LOANS TREATED AS BOGUS OF RS.9,96,579.00 DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE APPELLANT HAS ADMITTEDLY SUBMITTED THAT DURING THE PREVIOUS YEAR UNDER SCRUTINY HE HAS RECEIVED LOANS FROM HIS FRIENDS AND RELATIVES TOTALLING TO AN AMOUNT OF RS. 9,96,579/= AND HE FURNISHED THE NAMES OF THOSE FRIENDS AND RELATIVES. WHILE THE APPELLANT, USUALLY AS IN EACH YEAR BEING MADE TO REMAIN OUT OF THE STATE FOR MORE THAN HALF OF THE YEAR, WAS OUT OF THE STATE MORE PRECISELY WAS IN TAMILNADU IN CONNECTION WITH THE LIASIONING WITH THE AUTHORITIES OF THE ALAGAPPA UNIVERSITY, TAMILNADU FOR SMOOTH THE LIASIONING WITH THE AUTHORITIES OF THE ALAGAPPA UNIVERSITY, TAMILNADU FOR SMOOTH FACILITATION OF THE ENSUING EXAMINATIONS TO BE CONDUCTED IN ORISSA FOR THE; STUDENTS ENROLLED WITH THE BHUBANESWAR CENTRE BEING MANAGED BY THE APPELLANT WHEN HE WAS INTIMATED BY IS STAFF MEMBERS OF BHUBANESWAR THAT THE LEARNED JT.CIT, RANGE - 1, BHUBANESWAR HAS SOUGHT FOR EVIDENCES IN SUPPORT OF THE FOREGOING CLAIMS OF LOAN S TAKEN FROM THE FRIENDS AND RELATIVES. THE APPELLANT PROMPTLY PRAYED FOR TIME FOR THE PRODUCTION OF THE SOUGHT FOR EVIDENCES AS HE COULD HARDLY AFFORD TO COME BACK TO BHUBANESWAR AT THAT CRITICAL JUNCTURE GIVEN THE SENSITIVITY OF THE JOB HE WAS HANDLING I .E. HANDLING THE EXAMINATION ARRANGEMENTS FOR THE STUDENTS. THE DELAY ON THE PART OF THE APPELLANT TO PROVIDE EVIDENCES FOR THE ABOVE REASON WHICH WAS COMPLETELY BEYOND HIS CONTROL MADE THE LEARNED JT.CIT, RANGE - 1, BHUBANESWAR TO INFER THAT THE APPELLANT HAD NO EVIDENCE TO PROVIDE AND ACCORDINGLY THE 4 ITA NOS.135 & 462/CTK/2016 ASSESSMENT YEAR :2009 - 2010 LEARNED JT.CIT. RANGE - 1. BHUBANE S WAR ON TREATING THESE LOANS AS ALLEGEDLY BOGUS AMOUNTS HAS ADDED THE SAME TO THE TOTAL INCOME OF THE APPELLANT AS UNDISCLOSED INCOME. THE LD. ASSESSING OFFICER SHOULD NOT HAVE TREATED THESE AMOUNTS AS BOGUS AND HENCE UNDISCLOSED INCOME. THE LEARNED ASSESSING OFFICER SHOULD HAVE GIVEN AN OPPORTUNITY TO THE APPELLANT TO PRODUCE THE EVIDENCES IN SUPPORT OF HIS CLAIM FOR THESE AMOUNTS AS GENUINE LOANS. HENCE THE LOAN OF RS.9,96,579/ - MAY KINDLY BE ACCEPTED AS GENUINE AND ADDITIONS UNDER THIS HEAD MAY KINDLY BE DELETED.' DURING THE COURSE OF THE HEARING, THE LD. AR FILED A STATEMENT SUBMITTING AS UNDER: 'THE APPELLANT HEREBY SUBMITS THE FOLLOWING INFORMATION IN THE ABOVE MATTER: A) DETAILS OF LOANS & ADVANCES RS. I) HOUSING LOAN PROCEEDS AVAILED FROM ICICI BANK VIDE CH.NO.213 760/25.10.2008 CREDITED TO ASSESSEE 'S A/C NO. 049300100001285 MAINTAINED WITH KOTAK MAHINDRA BANK, BHUBANESWAR. - 750000 II) CASH ADVANCE RECEIVED ON DIFFERENT DATES FROM MS. ANJUSMITA NAYAK , RABINDRANATH EDUCATION SOCIETY, OCHC COMPLEX, KHARAVELA NAGAR, BHUBANESWAR - OFFICE SECRETARY - 146579 III) CASH ADVANCE RECEIVED ON DIFFERENT DATES FROM MR. S.S.V. PRASAD, PLOTNO.302, VENKAIAH APART MENT, PODULUKURU ROAD, NELLORE 524001 (ANDHRA PRADESH) - FRIEND 100000 996579' 5.2.1 CONSIDERING THE FACTS STATED BY THE APPELLANT IN THE SUBMISSION AS EXTRACTED ABOVE, THE MATTER WAS REFERRED TO THE AO FOR VERIFICATION AND COMMENTS. THE AO VIDE HIS LETTER NO.10488 DATED 03.01.2014 STATED AS UNDER: 'XXX XXX XXX AS DIRECTED, I AM SUBMITTING THE REMAND REPORT IN THE AFOREMENTIONED CASE AFTER VERIFYING THE DOCUMENTS FURNISHED BY THE ASSESSEE IN RESPONSE TO THE LETTER ISSUED IN THIS REGARD. ON GOING THROUGH THE ASSESSMENT RECORDS, IT IS REVEALED THAT AS PER THE ASSESSEE'S SUBMISSION OUT OF TOTAL BANK DEPOSITS AMOUNTING TO RS.58, 54,035/ - 5 ITA NOS.135 & 462/CTK/2016 ASSESSMENT YEAR :2009 - 2010 , RS.9,96.579/ - REPRESENT LOANS FROM FRIENDS AND RELATIVES. AS NO RELEVANT CONFIRMATIONS FROM SUCH PERSONS COULD BE PRODUCED DURING THE ASSESSMENT PROCEEDINGS, THE SAME WAS TREATED AS BOGUS AND ADDED TO THE TOTAL INCOME AS UNDISCLOSED INCOME. IN RESPONSE TO MY LETTER IN CONNECTION WITH THE REMAND REPORT, THE A.R. OF THE ASSESSEE SUBMITS THAT RS.9,96,579/ - CONSIST OF THE FOLLOWING: 1. ICICI BANK HOME LOAN RS. 7,50,000/ - 2. RECEIPT FROM MS. ANJUSMITA NAYAK RS.1,46, 5 79/ - 3. RECEIPT FROM MR. S. VENKATAVARA PRASAD RS. 1,00,000/ - IN SUPPORT OF THIS CLAIM, COPY OF ICICI BANK HOME LOAN SANCTION LETTER, BANK STATEMENT REFLECTING PAYMENT OF LOAN AMOUNT AND COPY OF SALE DEED IN PROOF OF ACQUISITION OF HOUSE PROPERTY WERE FURNISHED. CERTIFICATES FROM OTHERS CONFIRMING THE AMOUNT PAID ARE ALSO FURNISHED. AS DOCUMENTARY EVIDENCE IN RECEIPT OF ICICI HOME LOAN OF RS.7,50,000/ - HAS BEEN PRODUCED, THE SAME MAY KINDLY BE ACCEPTED AS GENUINE RECEIPT. REGARDING BALANCE RS. 2,46,579/ - , AS ONLY CERTIFICATES ARE FURNISHED WITHOUT ANY SUPPORTING DOCUMENT THE SAME MAY NOT BE ACCEPTED. ' 5.2.2 A COPY OF THE REMAND REPORT OF THE AO WAS GIVEN TO THE APPELLANT FOR HIS COMMENTS. IN RESPONSE, THE APPELLANT STATED THAT AS HE HAS FURNISHED THE C ONFIRMATION FROM THE CREDITORS THE ENTIRE LOAN AMOUNT SHOULD BE ACCEPTED AS EXPLAINED. 5.3 I HAVE CAREFULLY CONSIDERED THE MATTER AND GONE THROUGH THE ASSESSMENT RECORDS. AS IS CLEAR FROM THE REMAND REPORT OF THE AO, THE LOAN OF RS. 9,96,579/ - CONSISTS OF ICICI BANK LOAN OF RS. 7,50,000/ - . SINCE THIS LOAN HAS BEEN VERIFIED BY THE AO, I, AGREE WITH THE SUGGESTION OF THE AO THAT THE SAME SHOULD BE ACCEPTED AS GENUINE AND EXPLAINED. S O FAR AS THE BALANCE AMOUNT OF RS. 2,46,579/ - IS CONCERNED, THE APPELLANT HAS O NLY FILED C ONFIRMATIONS IN PLAIN PAPER ARE UNDATED. EVEN THE DATES OF TRANSACTIONS HAVE NOT BEEN MENTIONED IN THESE SO - CALLED CONFIRMATIONS. THERE IS NOTHING ON RECORD REGARDING THE IDENTITY OF THESE PERSONS OR THEIR CREDITWORTHINESS. THEREFORE, I AGREE WI TH THE AO THA T THESE TWO LOANS AMOUNTING TO RS. 2,46,579/ - CANNOT BE HELD AS EXPLAINED. IN VIE W OF THE SAME, THE ADDITION OF RS.9,96,579/ - IS SUSTAINED AT RS. 2,46,579/ - . THE APPELLANT GETS A RELIEF OF RS. 7,50,000/ - . GROUND NO. 1 IS, THUS, ALLOWED PARTLY IN FAVOUR OF THE APPELLANT. 6. GROU ND NO.2 RELATES TO ADDITION OF RS. 1,96,333/ - AS SUPPRESSED RECEIPTS. 6.1 AS PER DETAILS SUBMITTED BY THE APPELLANT WHILE EXPLAINING THE SOURCE OF THE DEPOSITS IN THE BANK ACCOUNT, THE AO NOT ICED THAT WHEREAS AN AMOUNT OF RS. 40,95,198/ - HAS BEEN SHOWN AS COLLECTION OF FEES THE APPELLANT HAS STATED 6 ITA NOS.135 & 462/CTK/2016 ASSESSMENT YEAR :2009 - 2010 TO HAVE SENT AN AMOUNT OF RS. 24,90.047/ - TO THE RXT SOCIET Y. THUS, THE BALANCE AMOUNT OF RS. 13.05.151 - SHOULD HAVE BEEN SHOWN AS THE G: INCOME OF THE APPELL ANT AGAINS T WHICH AN AMOUNT OF RS.11.08 818 - HAS BEEN DISCLOSED IN THE P&L ACCOUNT. THE AO, ACCORDINGLY, ADDED THE SAME TO THE TOTAL INCOME OF THE APPELLANT. 6. 2 IN THE WRITTEN SUBMISSION FILED BEFORE THE CIT(A) - I, BHUBANESWAR, THE LD. AR OF THE APPELLANT STATED AS UNDER: ' UNDISCLOSED RECEIPTS OF RS. 1,96,333.00 FROM THE BANK STATEMENTS SUBMITTED BY THE APPELLANT THE LEARNED JT.CIT, RANGE - 1, BHUBANESWAR, WITHOUT CALLING FOR THE BOOKS OF ACCOUNT, HAS ARRIVED AT AN AMOUNT OF RS. 40,95,198/ - TO BE THE TOTAL PROFESSIONAL RECEIPTS IN THE HANDS OF THE APPELLANT AND FROM THIS AMOUNT HE HAS DEDUCTED AN AMOUNT OF RS.27,90,047 AS REMITTANCES TO THE PRINCIPAL OF THE APPELLANT THEREBY LEAVING AN AMOUNT OF RS. 13,05,151 IN THE HANDS OF THE APPELLANT WH ICH HAS BEEN OBSERVED BY THE LEARNED JT.CIT, RANGE - 1, BHUBANESWAR TO BE THE NET PROFESSIONAL RECEIPTS OF THE APPELLANT. THE LEARNED JT. CTT, RANGE - 1, BHUBANESWAR COMPARED THIS FIGURE OF RS. 13,05,151 WITH THE F IGURE OF RECEIPT OF RS.1 1,08,818/= AS SHOWN IN THE PROFIT & LOSS ACCOUNT FILED BY THE APPELLANT AND HELD ON RECORD AND ARRIVED AT THE FINDING THAT THE APPELLANT HAS UNDERSTATED THE RECEIPTS BY THE DIFF ERENTIAL AMOUNT OF RS.L,96,333/ - I.E. RS.13,05,151 MIN US RS.11 ,08,818 AND HAS ACCORDINGLY ADDED THE SAID AMOUNT BACK TO THE TOTAL INCOME OF THE APPELLANT. THE APPELLANT COLLECTS FEES FROM SIZEABLE NUMBER OF STUDENTS SPREAD ACROSS THE LENGTH AND BREADTH OF THE STATE OF ORISSA INCLUDING SOME FROM THE NEIGHBOURING STATES, REMITS THESE TO THE CONCERNED UNIV ERSITY, CONDUCTS EXAMINATIONS AND ARRANGES FOR THE CERTIFICATES WHICH CHAIN OF EXERCISES IS NOT POSSIBLE WITHOUT MAINTENANCE OF ADEQUATE RECORDS AND DOCUMENTS. THE LD. ASSESSING OFFICER SHOULD NOT HAVE PRESUMED THAT THE APPELLANT DID NOT MAINTAIN BOOKS OF ACCOUNT. THE LD. ASSESSING OFFICER SHOULD HAVE PERUSED THE AUDITED ACCOUNTS OF THE APPELLANT HELD ON RECORD AND SHOULD HAVE CALLED FOR THE BOOKS OF ACCOUNT TO ARRIVE AT THE CORRECT FIGURE OF PROFESSIONAL RECEIPTS BY THE APPELLANT. HENCE, THE FINDING OF THE LD. ASSESSING OFFICER THAT THE NET PROFESSIONAL RECEIPTS BY THE APPELLANT W AS RS. 13,05,151/= AND NOT RS.11, 08,818/= BY SOLELY RELYING UPON THE BANK STATEMENT ENTRIES WITHOUT RECONCILING THOSE ENTRIES WITH THE BOOKS OF ACCOUNT IS NOT CORRECT. THEREFORE TH E ADDITION MADE AMOUNTING TO RS.1,96,333/ - WITHOUT CROSS VERIFICATION FROM THE BOOKS OF ACCOUNT OF THE APPELLANT IS ILLEGAL, ARBITRARY AND WITH OUT ANY BASIS. HENCE, THE AFORESAID ADDITION MAY KINDLY BE DELETED.' DURING THE COURSE OF THE HEARING, THE LD. AR FILED A STATEMENT SUBMITTING AS UNDER: 'B) DETAILS OF THE DIFF ERENTIAL RECEIPTS OF RS.L96333/ - IN THE BANK ACCOUNT. 7 ITA NOS.135 & 462/CTK/2016 ASSESSMENT YEAR :2009 - 2010 THIS AMOUNT REPRESENTS THE EXCESS OF CASH DEPOSITED ON DIFFERENT DATES FROM HIS INDIVIDUAL CORPUS OVER THE CASH WITHDRAWN ON DIFFERENT DATES TO HIS INDIVIDUAL CORPUS DURING THE CORRESPONDING PREVIOUS YEAR. ' 6.3 I HAVE CAREFULLY CONSIDERED THE MATTER. AS PER THE DETAILS FILED BY THE APPELLANT HIMSELF, THE GROSS TUITION FEE COLLECTED IS RS.40,90,198/ - OUT OF WHICH AGAIN AS PER DETAILS FILED BY THE APPELLANT THE AMOUNT REMITTED TO RNT SOCIETY IS RS.27,90,047/ - . THUS, THE BALANCE OF RS. 13,05,151/ - IS CLEARLY THE PROFESSIONAL INCOME OF THE APPELLANT AGAIN ST WHICH HE HAS DISCLOSED ONLY RS. 11,08,818/ - . THE STATEMENT FILED BY THE APPELLANT DURING THE COURSE OF HEARING BEFORE ME MAKES NO SENSE BECAUSE IT IS NOT UNDERS TOOD HOW THE FEES COLLECTED AND DEPOSITED IS OUT OF CASH WITHDRAWN ON EARLIER DATES. IN VIEW OF THE SAME, I FIND NO REASON TO INTERFERE WITH THE ACTION OF THE AO IN BRINGING TO TAX THE SUPPRESSED RECEIPT OF RS. 1,96,333/ - . THE SAME IS, ACCORDINGLY, CONFIRMED AND THE GROUND NO.2 IS DISMISSED. 5. I AM FULLY SATISFIED AND IN AGREEMENT WITH THE ORDER OF THE LD CIT(A) QUOTED ABOVE AND DO NOT FIND ANY GOOD AND JUSTIFIABLE REASON TO INTERFERE WITH THE ORDER OF LD CIT(A). HENCE, I CONFIRM THE ORDER OF THE LD CIT(A) AND DISMISS THE GROUNDS OF APPEAL OF THE ASSESSEE. 6. ITA NO.462/CTK/2014 IS DIRECTED AGAINST THE ORDER OF LD CIT(A) - 1, BHUBANESWAR DATED 15.9.2014, IN THE MATTER OF ASSESSMENT UNDER SECTION 271A OF THE I.T.ACT, 1961 CONFIRMING THE PENALTY OF RS .25,000/ - IMPOSED BY THE ASSESSING OFFICER. 7. THE SOLE GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS THAT NO OPPORTUNITY WAS GIVEN TO THE ASSESSEE TO PRODUCE BOOKS OF ACCOUNT, WHICH IS IN VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. 8. ON PERUSAL OF THE ORDER OF LD CIT(A) , I FIND THAT THE LD CIT(A) HAS AFFORDED SEVERAL OPPORTUNITIES TO THE ASSESSEE TO EXPLAIN THE REASONS FOR NON - 8 ITA NOS.135 & 462/CTK/2016 ASSESSMENT YEAR :2009 - 2010 MAINTENANCE OF BOOKS OF ACCOUNT. IN THE INSTANT CASE, THE ASSESSEE WAS REQUIRED TO MAINTAIN THE BOOKS OF ACCO UNT U/S.44AA OF THE ACT. HOWEVER, THE ASSESSEE FAILED TO MAINTAIN THE BOOKS OF ACCOUNT EVEN THOUGH SUBSTANTIAL TRANSACTIONS HAVE TAKEN PLACE . IN VIEW OF ABOVE, THE ASSESSING OFFICER IMPOSED PENALTY OF RS.25,000/ - U/S.271A OF THE ACT, WHICH WAS CONFIRMED BY THE LD CIT(A) IN FIRST APPEAL. 9. BEFORE ME, THERE WAS NO RESPONSE FROM THE SIDE OF THE ASSESSEE EVEN THOUGH SEVERAL OPPORTUNITIES HAVE BEEN ALLOWED. HENCE, I CONFIRM THE ORDER OF THE L D CIT(A) AND DISMISS THE GROUND OF APPEAL OF THE ASSESSEE. 10. IN T HE RESULT, BOTH THE APPEALS FILED BY THE ASSESSEE ARE DISMISSED . ORDER PRONOUNCE D IN THE OPEN COURT ON 1 6 / 01/2017 . SD/ - ( N.S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 16 /01 /2017 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, ASST.REGISTRAR, ITAT, CUTTACK 1. THE APPELLANT : MR SHAIKH MAHABOOB SUBHANI, RABINDRANATH EDUCATION SOCIETY, OCHC COMPLEX, NEAR RAM MANDIR, ALAGAPPA UNIVERSITY, KHARVEL NAGAR, UNIT - 3, BHUBANESWAR 2. THE RESPONDENT. JCIT, RANGE - 1, BHUBANESWAR 3. THE CIT(A) BERHAMPUR 4. CIT , BHUBANESWAR. 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//