Pavuluri Sylendra, Nellore V. ITO, Ward-2, Nellore

ITA 171/Hyd/2023

AI Insights

The case involves Pavuluri Sylendra, the appellant, who appealed against the order of the Commissioner of Income Tax (Appeals) - National Faceless Appeal Centre, Delhi, which confirmed the addition of Rs. 5,65,950 to his income for the assessment year 2017-18. The addition was initially made by the Assessing Officer during scrutiny of the income tax return, noting unexplained cash payments amounting to Rs. 5,65,950 for expenditures met through credit card. The CIT(A) upheld this addition as the appellant failed to provide sufficient evidence to substantiate his claim of receiving cash gifts from his father, which were purportedly used for these payments. The Tribunal, after reviewing the materials on record and noting the absence of the appellant or any representative, dismissed the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133374 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-05-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 14-05-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 20-03-2023
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Gift
• Section: 69C

Judgement Text

आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “SMC”, HYDERABAD BEFORE SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER आ.अपी.सं / ITA No. 171/Hyd/2023 (निर्धारण वर्ा / Assessment Year: 2017-18) Pavuluri Sylendra Nellore [PAN No. BNCPP4707M] Vs. Income Tax Officer, Ward-2, Nellore अपीलधर्थी / Appellant प्रत्‍यर्थी / Respondent निर्धाररती द्वधरध/Assessee by: NONE रधजस्‍व द्वधरध/Revenue by: Shri AP Babu, DR सुिवधई की तधरीख/Date of hearing: 15/05/2023 घोर्णध की तधरीख/Pronouncement on: 17/05/2023 आदेश / ORDER Aggrieved by the order dated 23/01/2023 passed by the learned Commissioner of Income Tax (Appeals)- National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), in the case of Sylendra Pavuluri (“the assessee”) for the assessment year 2017-18, assessee preferred this appeal. 2. When the matter is called, neither the assessee nor any authorised representative entered appearance. It could be seen from the record that the notices were issued to the address given in form No. 36. If the assessee is available in such address, such notice should have been served on the assessee. If for any reason, the assessee is not available there, it is for the assessee to make arrangements for service of such notice by furnishing the address where the assessee would be available, or to deliver it to some ITA No. 171/Hyd/2023 Page 2 of 4 authorised person, or by making request to the postal department to detain the mail till the assessee claims the same. However, there is no appearance for the assessee. In these circumstances, I find no option but to proceed to hear the counsel for Revenue and decide the matter on merits basing on the material available on record. 3. Relevant facts necessary for the disposal of this appeal is that during the course of scrutiny of the income tax return by the assessee, learned Assessing Officer found that the assessee made cash payments to the tune of Rs. 5,65,950/- towards the expenditure met by him through credit card. According to the learned Assessing Officer when called upon, the assessee failed to explain the source and, therefore, he added the same. 4. During the appellate proceedings, learned CIT(A) recorded that though the assessee claimed to have received a sum of Rs. 2.5 lakhs by way of cash gifts from his father, out of the pension savings, no evidence to substantiate the same was forthcoming. Learned CIT(A), therefore, finding no material to take a contrary view, confirmed the addition made by the learned Assessing Officer to the tune of Rs. 5,65,950/-. 5. Learned DR submits that the finding of facts by the authorities below are undisputed and, therefore, they are justified in making and confirming the addition to the tune of Rs. 5,65,950/- and since there is no material contrary now on the record, a different view is not prompted in the proceedings. 6. I have perused the record and find that the learned Assessing Officer recorded that the assessee was called upon to explain the source for the credit card payments made in cash by specifically stating that if the assessee fails to file the statement and also explain the sources, the material available before the learned Assessing Officer will be taken into consideration for completion of the assessment by treating such cash payments as from un-explained source to bring the same to tax under ITA No. 171/Hyd/2023 Page 3 of 4 section 69C of the Act. In spite of the same, the assessee failed to given any explanation and, therefore, such an amount was brought to tax. 7. I further find from the impugned order that the assessee had taken a plea before the learned CIT(A) that he received a sum of Rs. 2.5 lakhs by way of cash gifts from his father, from out of the pension savings but the assessee failed to substantiate the same with reference to the ITR, bank statement etc., of his father. In these circumstances, learned CIT(A) is justified in confirming the addition. 8. Before me also, the assessee failed to appear and to dispute the correctness of the additions made by the learned Assessing Officer and confirmed by the learned CIT(A). In the absence of any material suggesting contrary, I find it difficult to disturb the finding of fact recorded by the authorities below. In these circumstances, I find no option but to uphold the findings of the authorities. Accordingly, I find that the grounds of appeal are devoid of merit and the same are liable to be dismissed. 9. In the result, appeal of the assessee is dismissed. Order pronounced in the open court on this the 17 th day of May, 2023. Sd/- (K. NARASIMHA CHARY) JUDICIAL MEMBER Hyderabad, Dated: 17/05/2023 TNMM ITA No. 171/Hyd/2023 Page 4 of 4 Copy forwarded to: 1. Pavuluri Sylendra, F.No. 403, Simhapuri Pride Apts., Rajavari Street, Nellore. 2. Income Tax Officer, Ward-2, Nellore. 3. DR, ITAT, Hyderabad. 4. GUARD FILE. TRUE COPY ASSISTANT REGISTRAR ITAT, HYDERABAD