Biranchi Narayan Mishra, Khordha V. ITO, Khordha Ward, Khordha

ITA 319/CTK/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9269 (ITAT-CUTTACK)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 03-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Peak credit
• Section: 147; 68

Judgement Text

ITA NOS.319 TO 321 & 350/CTK/2019 ASSESSMENT YEARS : 2012 - 13, 2013 - 14,2015 - 16 & 2014 - 15 P A G E 2 | 3 144/147 OF THE ACT WITHOUT ALLOWING PROPER OPPORTUNITY OF BEING HEARD TO T HE ASSESSEE. LD COUNSEL SUBMITTED THAT SINCE THE ASSESSEE HAS NOT MAINTAINED BOOKS OF ACCOUNT, THEREFORE, CASH DEPOSITED INTO THE BANK ACCOUNT DO NOT REPRESENT THE CREDIT FOUND IN THE BOOKS OF ACCOUNT OF THE ASSESSEE AND, THEREFORE, NO ADDITION COULD BE MA DE UNDER SECTION 68 OF THE ACT, HE SUBMITTED THAT THE DEPOSITS IN THE BANK ACCOUNT CANNOT BE THE SOLE BASIS FOR REOPENING THE ASSESSMENT UNDER SECTION 147 OF THE ACT, FOR HOLDING THAT INCOME HAS ESCAPED ASSESSMENT. LD COUNSEL FURTHER SUBMITTED THAT THE ADD ITION CANNOT BE MADE IN THE FACTS AND CIRCUMSTANCES OF THE CASE. HE SUBMITTED THAT, IF AT ALL ANY ADDITION IS REQUIRED TO BE MADE, THEN THE PEAK AMOUNT CAN BE ADDED TO THE INCOME OF THE ASSESSEE. 4. REPLYING TO ABOVE, ID DR SUBMITTED THAT WHEN THE A SSESSEE HAS NOT DISCLOSED THE ACCOUNTS OF THE ASSESSEE THEN THE ENTIRE INCOME HAS TO BE TAXED IN THE HANDS OF THE ASSESSEE. HOWEVER, IN ALL FAIRNESS, ID D.R. SUBMITTED THAT THE CASE MAY BE RESTORED TO THE FILE OF THE AO FOR ALLOWING THE ASSESSEE TO EXPLAIN THE SOURCE OF CASH CREDIT AND DETERMINATION OF PEAK CREDIT TO BE ADDED TO THE INCOME OF THE ASSESSEE. 5. ON CAREFUL CONSIDERATION OF RIVAL SUBMISSIONS, FIRST OF ALL, I MAY POINT OUT THAT THE ASSESSMENT IN ALL THESE YEARS HAVE BEEN COMPLETED UNDER S ECTION 144/147 OF THE ACT. THE CONTENTION OF ID A.R. BEFORE THE TRIBUNAL THAT IF AT ALL ANY ADDITION IS REQUIRED TO BE MADE THAT WOULD BE THE PEAK CREDIT. ON PERUSAL OF THE ASSESSMENT ORDER, I OBSERVE THAT NO SUCH EXERCISE