BK DEVELOPERS, PUNE V. THE INCOME TAX OFFICER WARD 8(1) AKURDI PUNE, AKURDI PUNE

ITA 227/PUN/2023

AI Insights

The case involves B.K. Developers, a partnership firm engaged in trading, which did not file a regular return of income for the assessment year 2017-18. The Assessing Officer, upon discovering a cash deposit of Rs.29,38,000 in the firm's bank account, issued a notice under section 142(1) of the Income Tax Act, 1961, demanding a return of income. The firm failed to respond adequately, leading the Assessing Officer to make an assessment based on available materials, including a survey conducted at the firm's premises. The CIT(A) upheld this assessment, leading to the present appeal before the Tribunal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137625 (ITAT-PUNE)
• Duration Of Justice: 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-03-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 23-03-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 26-02-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.227/PUN/2023 िनधाᭅरण वषᭅ / Assessment Year : 2017-18 B.K. Developers, S.No.104/105, B.K. Developers, Pimple Saudagar, Pune- 411027. PAN : AAKFB0718Q Vs. ITO, Ward-8(1), Akurdi, Pune. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of ld Commissioner of Income Tax (Appeals)- 11, Pune [‘the CIT(A)’] dated 31.12.2022 for the assessment year 2017-18. 2. Briefly, the facts of the case are that the appellant is a partnership firm engaged in the business of trading. No regular Return of Income was filed for the assessment year 2017-18 by the appellant firm. However, based on the information that the Assessee by : Shri Arrchena Shetty Revenue by : Shri Suhas Kulkarni Date of hearing : 24.03.2023 Date of pronouncement : 27.03.2023 ITA No.227/PUN/2023 2 appellant had made a cash deposit of Rs.29,38,000,/- in the Seva Vikas Co-op. Bank Ltd. bearing Account No.00001512 during the amortization period, the Assessing Officer issued a notice u/s 142(1) of the Income Tax Act, 1961 (‘the Act’) calling upon the appellant to file true and correct return of income. In response to the same, the appellant firm had not filed any return of income. In the circumstances, the Assessing Officer was constrained to complete the assessment to best of his assessment and, accordingly, considering the material gathered by him during the course of survey operations conducted in the business premises of the appellant firm, had concluded that the explanation of the assessee in support of the cash deposits, cannot be believed for the reason that the books of accounts were not complete, as no expenditure was recorded in the books of accounts and the available cash balance as per the books of accounts cannot be believed. 3. Being aggrieved by the above assessment order, an appeal was filed before the ld. CIT(A) who vide impugned order confirmed the action of the Assessing Officer. 4. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. ITA No.227/PUN/2023 3 5. I have carefully gone through the finding recorded by the ld. CIT(A) vide para 10 of his order, on mere perusal of the said findings, it would be clear that the appellant had not offered any explanation in support of the cash deposits even during the course of proceedings before the ld. CIT(A). Therefore, I am of the considered opinion that the order of the ld. CIT(A) is quite reasoned and requires no interference. 6. In the result, the appeal filed by the assessee stands dismissed. Order pronounced on this 27 th day of March, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 27 th March, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A)-11, Pune. 4. The Pr. CIT (Central), Pune. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.