Bandla Seshagiri , Rajahmundry V. The Income Tax Officer, Ward-2(3), , Rajahmundry

ITA 159/VIZ/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6215 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 08-04-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P SRINIVASA MURTHY
• Keywords: Unexplained cash credit
• Section: 143(3); 144

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER . / I . T .A.NO. 15 9 /VIZ/201 9 ( / ASSESSMENT YEAR : 20 09 - 1 0 ) SRI DUVVADA RAJESH KUMAR S/O SRI DUVVADA APPA RAO D.NO.1 - 11 - 56 KONDAVARIPETA, TUNI EAST GODAVARI DIST. [PAN :AIHPD8765C] VS. INCOME TAX OFFICER WARD - 1 TUNI ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : NONE / RESPONDENT BY : S HRI P.SRINIVASA MURTHY, DR / DATE OF HEARING : 1 9 . 07. 201 9 / DATE OF PRONOUNCEMENT : 07. 08. 201 9 / O R D E R P ER SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER : THE ASSESSEE FILED APPEAL WITH A DELAY OF 98 DAYS AND F URNISHED THE AFFIDAVIT EXPLAINING THE REASONS FOR DELAY IN FILING THE APPEAL. THE REASONS GIVEN FOR THE DELAY IN FILING THE APPEAL WAS DUE TO SUFFERING FROM COCYX PROBLEM AND WAS ADVISED TO TAKE BED REST. HE FURTHER SUBMITTED THAT HE 2 I.T.A. NO . 15 9 /VIZ/201 7 . A.Y.20 09 - 1 0 SRI DUVVADA RAJESH KUMAR, TUNI WAS IN HOSPITAL UNDER DOCTOR S OBSERVATION. WE HAVE HEARD THE LD.AR. THOUGH THE ASSESSEE DID NOT FILE ANY MEDICAL CERTIFICATE, ON THE STRENGTH OF THE AFFIDAVIT FILED BY THE ASSESSEE DULY ATTESTED BY THE NOTARY, WE CONDONE THE DELAY AND ADMIT THE APPEAL. THIS APPEAL IS FILED BY T HE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX [CIT(A)] - 2, VISAKHAPATNAM VIDE ITA NO.04/2011 - 12/CIT(A) - 2/VSP/W - 2/KKD/2016 - 17 DATED 22.08.2016 FOR THE ASSESSMENT YEAR (A.Y.)2009 - 10. 2 . WE HAVE HEARD THE DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATERIAL PLACED ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER (AO) COMPLETED THE ASSESSMENT U/S 143(3) ON TOTAL INCOME OF RS.1,25,90,100/ - AGAINST THE RETURNED INCOME OF RS.9,27,610/ - . IN THE ASSESSMENT, THE AO MADE THE ADDITION OF RS.1,16,62,490/ - REPRESENTING THE UNEXPLAINED CASH DEPOSITS MADE IN THE BANK ACCOUNT S . AS SEEN FROM THE ASSESSMENT ORDER, THE ASSESSEE HAS DEPOSITED THE CASH OF RS.86,61,870/ - IN THE HSBC BANK, HYDERABAD WITH A/C NO.INR 081403966006, RS.12,45,900 IN THE STATE BANK OF INDIA, VIZIANAGARAM WITH A/C NO.30354757044 AND RS.17,54,720/ - IN AXIS BANK, GAJUWAKA WITH A/C NO.075010100392976. IN TOTAL, THE ASSESSEE HAS MADE THE CASH DEPOSITS OF RS.1,16,62,490/ - IN THE ABOVE BANK 3 I.T.A. NO . 15 9 /VIZ/201 7 . A.Y.20 09 - 1 0 SRI DUVVADA RAJESH KUMAR, TUNI ACCOUNTS FOR WHICH THE ASSESSEE COULD NOT EXPLAIN THE SOURCES AT THE TIME OF ASSESSMENT. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THERE WAS NO RESPONSE FROM THE ASSESSEE, HENCE, THE AO HAS COMPLETED THE ASSESSMENT U/S 144 OF THE ACT AND M ADE THE ADDITION OF RS.1,16,62,490/ - TO THE RETURNED INCOME . 3. AGAINST THE ORDER OF THE AO THE ASSESSEE WENT ON APPEAL BEFORE THE CIT(A) AND FILED THE WRITTEN SUBMISSIONS AND ALSO GAVE EXPLANATION FOR THE SOURCES STATING THAT SOME CREDITS IN THE BANK ACC OUNTS WERE ALREADY CONSIDERED IN THE INCOME RETURNED , SOME CREDITS WE RE TRANSFER ENTRIES AND IN CASE OF SOME OF THE DEPOSITS SOURCES COULD NOT BE EXPLAINED AND TO BE CONSIDERED FOR TAXATION. THE LD.CIT(A) CALLED FOR THE REMAND REPORT FROM THE AO AND AFTER CONSIDERING THE REMAND REPORT, THE EXPLANATION OF THE ASSESSEE THE LD.CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE PARTLY. 4. AGGRIEVED BY THE ORDER OF THE LD.CIT(A), THE ASSESSEE FILED APPEAL BEFORE US CHALLENGING THE CONFIRMATION OF ADDITION OF RS.64,00,000/ - . 5. WE HAVE HEARD THE LD.DR AND GONE THROUGH THE ASSESSMENT ORDER AS WELL AS THE ORDER OF THE LD.CIT(A). AS PER THE ASSESSMENT ORDER, THERE WAS A DEPOSIT OF RS.64,00,000/ - ON 16.08.2008 FOR WHICH THE ASSESSEE COULD NOT 4 I.T.A. NO . 15 9 /VIZ/201 7 . A.Y.20 09 - 1 0 SRI DUVVADA RAJESH KUMAR, TUNI EXPLAIN THE SOURCE FOR THE DEPOSIT. IN THE STATEMENT RECORDED ON 26.04.2010, THE ASSESSEE HAD VOLUNTEERED THE ADMISSION OF INCOME AS UNEXPLAINED CASH CREDIT. DURING THE APPEAL PROCEEDINGS, THE ASSESSEE EXPLAINED THAT THIS AMOUNT REPRESENT ED THE LOAN RECEIVED FROM MR.GEORGE OF USA THROUGH MANJIT CHADDA AND FURNISHED THE CONFIRMATION LETTER AND AFFIDAVIT FROM MR.GEORGE TO THE INVESTIGATION WING AND STATED THAT THE AMOUNT WAS RECEIVED THROUGH REGULAR BANKING CHANNEL AND WAS CONFIRMED BY THE PERSON WHO HAS ADVANCED THE LOAN . T H E AFFIDAVIT WAS DULY ENDORSED BEFORE NOTARY PUBLI C IN USA. THE LD.CIT(A) EXAMINED THE AFFIDAVIT FILED BY THE ASSESSEE AND OBSERVED THAT IN SPITE OF GIVING SUFFICIENT OPPORTUNITIES DURING THE ASSESSMENT PROCEEDINGS, THE ASSESSEE FAILED TO PROVE THE SOURCE OF THE CREDITS. THE AMOUNTS WERE STATED TO HAVE RECEIVED FROM MR.GEORGE BUT W ERE TRANSFERRED BY MANJIT CHADDA ON HIS BEHALF. NO CONFIRMATION LETTER WAS FILED BY THE ASSESSEE FROM MANJIT CHADDA AND COULD NOT EXPLAIN THE REASONS FOR NON FURNISHING THE CONFIRMATION FROM MR.CHADDA. THE ASSESSEE ALSO DID N OT FURNISH THE ADDRESS AND THE PROOF OF REMITTANCES TO CHADDA S A/C FROM USA. NO OTHER EVIDENCE WAS FURNISHED BY THE ASSESSEE TO ESTABLISH THAT THE LOAN WAS GENUINE. , HENCE THE LD.CIT(A) CONFIRMED THE ADDITION AND UPHELD THE ORDER OF THE AO. 5 I.T.A. NO . 15 9 /VIZ/201 7 . A.Y.20 09 - 1 0 SRI DUVVADA RAJESH KUMAR, TUNI 5.1. DURING TH E APPEAL HEARING, NO ADDITIONAL INFORMATION WAS FILED BY THE ASSESSEE AND NONE REPRESENTED THE CASE. IN THE INSTANT CASE, THERE WAS CREDIT AMOUNT OF RS.64 LAKHS DEPOSITED IN THE BANK ACCOUNT FOR WHICH THE ASSESSEE FAILED TO EXPLAIN THE SOURCE WITH TANGIBL E EVIDENCE. THEREFORE, WE DO NOT SEE ANY REASON TO INTERFERE WITH THE ORDER OF THE LD.CIT(A) AND THE SAME IS UPHELD. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH AUGUST, 2019. S D/ - S D/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 07 .0 8 .2019 L.RAMA, SPS 6 I.T.A. NO . 15 9 /VIZ/201 7 . A.Y.20 09 - 1 0 SRI DUVVADA RAJESH KUMAR, TUNI / COPY OF THE ORDER FORWARDED TO: - 1. / THE ASSESSEE - SRI DUVVADA RAJESH KUMAR , S/O SRI DUVVADA APPA RAO, D.NO.1 - 11 - 56, KONDAVARIPETA, TUNI, EAST GODAVARI DIST. 2. / THE REVENUE - INCOME TAX OFFICER, WARD - 1, TUNI , EAST GODAVARI DIST. 3. THE COMMISSIONER OF INCOME TAX - 2, VISAKHAPATNAM 4. THE COMMISSIONER OF INCOME TAX (APPEALS) - 2, VISAKHAPATNAM 4 . , , / DR, ITAT, VISAKHAPATNAM 5 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM