Ajit Kumar Jain Dugad, Secunderabad V. Income Tax Officer, Ward-10(5), Hyderabad

ITA 1827/Hyd/2019

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6206 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2015-2016
• Appeal Filed On: 18-12-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T. SUNIL GOUTAM
• Keywords: Unexplained cash credit; Unexplained investment; Capital Gains
• Section: 68; 143(3); 142(1); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A”: HYDERABAD (THROUGH VIRTUAL CONFERENCE) B EFORE SH RI SA TBEER SING H GODA RA, JU DI CIA L MEM BER AND SHR I L AXMI PR AS A D SAHU , AC COUNT ANT MEMBE R ITA No. 1827/H/2019 Assessment Year: 2015-16 Ajit Kumar Jain Dugad, Secunderabad. PAN – AEWPD 3307 F Vs. Income tax Officer, Ward – 10(5), Hyderabad. (Appellant) (Respondent) Assessee by: None Revenue by: Shri T. Sunil Goutam Date of hearing: 13/12/2021 Date of pronouncement: 17/12/2021 O R D E R PER L.P. SAHU, A.M.: This appeal filed by the assessee is directed against CIT(A) - 6, Hyderabad’s order dated 30/09/2019 for AY 2015-16 involving proceedings u/s 143(3) of the Income Tax Act, 1961 ; in short “the Act on the following grounds of appeal: “1. That the Commissioner of Income tax appeal order in confirming the assessment order passed by the Income Tax Officer Ward-10(5) Hyderabad for the ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 2 -: assessment year 2015-2016 under Section 143(3) of the Income Tax Act is contrary to law against the weight of evidence and probabilities of the case. 2. The Assessing officer has erred by making addition of unexplained cash credit uls section 68 of the IT Act Amounting to Rs. 59,90,767 ignoring the explanation and submission made during assessment proceedings. 3. Alternatively the income should have been estimated instead the entire deposit in the bank as an income. 4. That the opening cash balance of Rs.13,55,000/- as on 1-4-2014 should have been taken, instead ignoring. 5. The Assessing officer has erred levy tax on short term capital as per normal slab rate prescribed by the respective finance Act instead special rate of income tax @15% as per provision of section 111A of the Income tax act.” 2. Briefly the facts of the case are that the assessee is an individual engaged in the business of trading in handlooms, matching clothes and other materials. The assessee is deriving income under various heads viz., Profits and gains of business or profession, Capital gains and Income from other sources. The assessee filed his return of income for the impugned AY 2015-16 on 28.03.2017 admitting a total income of Rs.4,50,950/-. The return was processed ujs.143(l) of the Act and selected for Limited scrutiny under CASS to verify the issue whether cash deposits have been made from disclosed sources. ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 3 -: 5.2 Accordingly, AO issued the statutory notices u/s 143(2) and 142(1) of the Act and, after conducting hearings with the AR of the assessee, the assessment was completed, vide order u/s.143(3) of the Act dated 18.12.2017, determined the total income of the assessee at Rs.73,55,345/- by making the following additions: 1) Unexplained cash credits in bank account = Rs.59,90,767/- 2) Unexplained investment = Rs. 75,998/- 3) Disallowance of unexplained other expenses while computing capital gains = Rs. 8,28,630/- 5.3 The AO decided the above disallowances by observing as under in his order: LEFT BLANK INTENTIONALLY ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 4 -: LEFT BLANK INTENTIONALLY ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 5 -: LEFT BLANK INTENTIONALLY ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 6 -: ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 7 -: ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 8 -: Though the assessee appeared on 14-12-2017, he did not produce any documentary evidence in support of the expenses claimed. Accordingly, an amount of Rs.8,28,630/- is added to the Total Income of the assessee and the loss of Rs.55,415/- claimed by the assessee is disallowed." Addition: Rs.8,28,630/-" 6. When the assessee preferred an appeal before the CIT(A) against the order of AO, the CIT(A) partly allowed the appeal of the assessee that the additions made towards unexplained investment of Rs. 75,998/- and capital gains of Rs. 8,28,630/- were deleted while sustained the addition of Rs. 59,90,767/- made towards unexplained cash credits. 7. Aggrieved by the order of CIT(A), the assessee is in appeal before the ITAT. 8. At the time of hearing of this appeal, none appeared on behalf of the assessee and, therefore, we proceed to decide the appeal after hearing the ld. DR and the facts available on record. 9. We have heard the ld. DR and perused the material on record. 10. As regards, ground No. 1 to 5 relating to the addition of Rs. 59,90,767/- u/s 68 on account unexplained cash credit, the CIT(A) confirmed the said addition by observing ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 9 -: that the assessee has failed to discharge the burden of proof with regard to accounted sources of cash deposits found in his bank account held with Vijaya Bank to the extent of Rs. 59,90,767/-. The CIT(A) discussed and analysed the issue elaborately in his order and for the sake of clarity, we reproduce the findings of the CIT(A) as under: ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 10 -: ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 11 -: LEFT BLANK INTENTIONALLY ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 12 -: LEFT BLANK INTENTIONALLY ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 13 -: ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 14 -: ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 15 -: LEFT BLANK INTENTIONALLY ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 16 -: 10.1 Since, there is no Representation from the assessee and the CIT(A) has discussed the issue in detail as quoted supra, which are not controverted, we uphold the order of CIT(A) and dismiss the grounds raised by the assessee on this issue. 11. In the result, appeal of the assessee is dismissed in above terms. Pronounced in the open court on 17 th December, 2021. Sd/- Sd/- (S.S. GODARA) (L. P. SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated: 17 th December, 2021. ITA No.. 1827/Hyd/2019 A j i t K u m a r J a i n D u g a d, H y d . :- 17 -: kv Copy to : 1 Ajit Kumar Jain Dugad H.No. 16, Raukmani Devi Colony, Phase – II, Welligton Enclave, West Maredpally, Secunderabad. 2 ITO, Ward -10(5), Hyderabad. 3 CIT(A) - 6, Hyderabad. 4 Pr. CIT – 6, Hyderabad 5 ITAT, DR, Hyderabad. 6 Guard File.