Sanjay Shrikant Sawant, Mumbai V. Income-tax Officer,

ITA 985/PUN/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 1748 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2016
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 31-05-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 13-05-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NISHTHA TIWARI
• Keywords: Unexplained cash credit

Judgement Text

] IQ.KS ] IQ.KS ] IQ.KS ] IQ.KS IQ.KS IQ.KSIQ.KS IQ.KS IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE . . , , ' # BEFORE SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO.985/PN/2014 '% % / ASSESSMENT YEAR : 2006-07 SHRI SANJAY SHRIKANT SAWANT, 75, BUILDING NO.3, SWAPNAPURTI CHS, L MITHA GHAR ROAD, MULUND (E), MUMBAI 400 081 PAN NO.AKKPS0657B . / APPELLANT V/S ITO, WARD-2(4), KUDAL . / RESPONDENT / ASSESSEE BY : NONE / DEPARTMENT BY : MS. NISHTHA TIWARI / ORDER PER R.K. PANDA, AM : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 02-07-2012 OF THE CIT(A)-11, MUMBAI RELATIN G TO ASSESSMENT YEAR 2006-07. 2. THIS APPEAL WAS FIXED FOR HEARING FOR THE FIRST TIME ON 15- 10- 2015. SINCE NOBODY APPEARED ON THAT DATE, THE SAME WA S ADJOURNED TO 12-01-2016. SINCE NONE APPEARED ON BEHA LF OF THE / DATE OF HEARING :31.05.2016 / DATE OF PRONOUNCEMENT: 31.05.2016 2 ITA NO.985/PN/2014 ASSESSEE ON 12-01-2016 THE APPEAL WAS AGAIN ADJOURNED TO 30-03-2016. AGAIN ON 30-03-2016 NONE APPEARED ON BEHALF OF TH E ASSESSEE FOR WHICH THE CASE WAS ADJOURNED TO 31-03-20 16. TODAY, WHEN THE NAME OF THE ASSESSEE WAS CALLED NONE APPEARE D ON BEHALF OF THE ASSESSEE NOR ANY PETITION SEEKING ADJOURNME NT OF THE CASE WAS FILED. IT WAS FURTHER SEEN THAT BECAUSE OF NON APPEARANCE THE AO HAS PASSED ORDER U/S.144 OF THE I.T . ACT, 1961. THE LD.CIT(A) ALSO CONFIRMED THE ORDER OF THE AO IN ABSENCE OF APPEARANCE BEFORE HIM BY THE ASSESSEE. FURT HER, THERE IS A DELAY OF 620 DAYS IN FILING OF THIS APPEAL BY THE ASSESS EE BEFORE THE TRIBUNAL. UNDER THESE CIRCUMSTANCES, THE APP EAL IS BEING DECIDED ON THE BASIS OF MATERIAL AVAILABLE ON RECORD A ND AFTER HEARING THE LD. DEPARTMENTAL REPRESENTATIVE. 3. THE ASSESSEE IN THE GROUNDS OF APPEAL HAS CHALLENGED THE ORDER OF THE CIT(A) IN CONFIRMING THE VARIOUS ADDITIONS MADE BY THE AO. 4. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS A N INDIVIDUAL AND DERIVES INCOME FROM COMMISSION AND PCO. HE FILED HIS RETURN OF INCOME ON 19-12-2006 DECLARING TOTAL INCO ME AT RS.1,34,842/-. DESPITE SERVICE OF NOTICE BY THE AO FOR A NU MBER OF TIMES, NONE APPEARED ON BEHALF OF THE ASSESSEE FOR WHICH THE AO PROCEEDED TO COMPLETE THE ASSESSMENT ON THE BASIS OF MATERIAL AVAILABLE ON RECORD TO THE BEST OF HIS JUDGMENT. THE AO OBSERVED FROM THE BALANCE SHEET THAT THE ASSESSEE HAS TAKEN UN SECURED LOAN OF RS.4,98,000/- FROM THE FOLLOWING PARTIES : 3 ITA NO.985/PN/2014 SHRI SURESH MANKAR - RS.75,000/- SMT. SHAILAJA KADAM - RS.1,00,000/- M/S. MAHINDRA FINANCE - RS.3,23,000/- ------------------ TOTAL - RS.4,98,000/- ------------------ IN ABSENCE OF ANY EVIDENCE TO SUPPORT THE CLAIM THE AO MADE ADDITION OF RS.4,98,000/- AS UNEXPLAINED CASH CREDIT U/S.68 O F THE I.T. ACT. SIMILARLY, THE AO MADE ADDITION OF RS.50,000/- ON ACCOUNT OF HOUSEHOLD EXPENSES SINCE ACCORDING TO HIM THE WITHDRAWAL SHOWN BY THE ASSESSEE AT RS.80,000/- IS INSUFFICIENT TO MEET VARIOUS EXPENSES FOR RUNNING THE HOUSEHOLD. THE AO FURTHER NOTED THAT THE ASSESSEE HAS DEBITED VARIOUS EXPENSES TO THE TUNE OF RS.6,53,468/- AGAINST THE GROSS RECEIPTS OF RS.8,60,099/-. IN ABSENCE OF SUPPORTING DETAILS/VOUCHERS IN RESPECT OF TH E VARIOUS EXPENSES DEBITED, THE AO DISALLOWED 50% OF THE EXPENSES AMOUNTING TO RS.3,26,734/-. THUS IN EFFECT THE AO HAS MAD E ADDITION OF RS.8,74,734/-. 5. SINCE NONE APPEARED ON BEHALF OF THE ASSESSEE THE L D.CIT(A) UPHELD THE ADDITION MADE BY THE AO. AGGRIEVED WITH SUCH ORDER OF THE CIT(A) THE ASSESSEE IS IN APPEAL BEFORE US. 6. WE HAVE PERUSED THE ASSESSMENT ORDER AND THE ORDE R OF THE CIT(A) AND HEARD THE LD. DEPARTMENTAL REPRESENTATIVE. WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) UPHOLDING THE VAR IOUS ADDITIONS MADE BY THE AO. ADMITTEDLY, THE ASSESSEE DID N OT APPEAR BEFORE THE AO DESPITE REPEATED OPPORTUNITIES GRA NTED BY HIM. WHEN THE ASSESSEE HAS SHOWN CERTAIN UNSECURED LOAN S IN THE BALANCE SHEET FILED, THE ONUS WAS ALWAYS ON THE ASS ESSEE TO 4 ITA NO.985/PN/2014 SUBSTANTIATE WITH EVIDENCE TO THE SATISFACTION OF THE AO R EGARDING THE IDENTITY AND CREDIT WORTHINESS OF THE LOAN CREDITORS A ND THE GENUINENESS OF THE TRANSACTION. SINCE THE ASSESSEE IN TH E INSTANT CASE HAS FAILED TO DISCHARGE THE ONUS CAST ON HIM, THER EFORE, THE ADDITION OF RS.4,98,000/- MADE BY THE AO U/S.68 AND SUSTAIN ED BY THE CIT(A) HAS TO BE UPHELD. SIMILARLY, THERE IS NO EVI DENCE FILED BY THE ASSESSEE REGARDING THE VARIOUS EXPENSES DEB ITED TO THE PROFIT AND LOSS ACCOUNT. IT IS THE SETTLED PROPOSITION OF LA W THAT FOR ANY EXPENDITURE TO BE ALLOWABLE AS DEDUCTION, THE ONUS IS ALWAYS ON THE ASSESSEE TO SUBSTANTIATE WITH EVIDENCE TO THE SATISFACTION OF THE AO THAT SUCH EXPENDITURE HAS BEEN INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS. IN THE INSTANT C ASE, THE ASSESSEE HAS FAILED TO DISCHARGE THE ONUS CAST ON HIM. THEREFORE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE CIT(A) UPHOLD ING THE DISALLOWANCE OF RS.3,26,734/- OUT OF THE EXPENSES. 7. SO FAR AS ADDITION OF RS.50,000/- MADE BY THE AO ON ACCOUNT OF LOW WITHDRAWAL WHICH HAS BEEN UPHELD BY THE CI T(A) IS CONCERNED, WE ALSO DO NOT FIND ANY INFIRMITY IN THE SAME. ADMITTEDLY, THE ASSESSEE HAS NOT EXPLAINED THE SIZE OF TH E FAMILY AND STANDARD OF HIS LIVING. IN ABSENCE OF ANY EXPLANATION GIVEN BY THE ASSESSEE EITHER BEFORE THE AO OR BEFORE THE CIT(A) O R EVEN BEFORE US, THE ADDITION MADE BY THE AO AND SUSTAINED BY THE CIT(A) HAS TO BE UPHELD. IN THIS VIEW OF THE MATTER, WE UP HOLD THE ORDER OF THE CIT(A) AND THE GROUNDS RAISED BY THE ASSES SEE ARE DISMISSED. 5 ITA NO.985/PN/2014 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEA RING ITSELF, I.E. ON 31 ST MAY, 2016. SD/- SD/- ( VIKAS AWASTHY ) ( R.K. PANDA ) JUDICIAL MEMBER ACCOUNTANT MEMBER IQ.KS PUNE ; # DATED : 31 ST MAY, 2016. LRH'K ( )'+ , / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ( ) S / THE CIT(A)-11, MUMBAI 4. ( S / THE CIT-11, MUMBAI 5. 6. + ., ., IQ.KS / DR, ITAT, B PUNE; / GUARD FILE. / BY ORDER , //TRUE COPY // + //TRUE COPY/ 2 . / SR. PRIVATE SECRETARY ., IQ.KS / ITAT, PUNE