VEEYEMAR & CO.,CALICUT V. ITO, WARD 1(3), KOZHIKODE

ITA 370/COCH/2025

AI Insights

The case involves Veeyemar & Co., a partnership firm, which appealed against the order of the National Faceless Appeal Centre, Delhi, for the Assessment Year 2017-18. The firm had initially filed a return of income disclosing Rs. 5,85,750, which was later found to have discrepancies leading to an additional assessment of Rs. 42,26,563. The primary issue was the addition of Rs. 36,40,813, which the AO considered as bogus receipts from debtors. The Tribunal's decision was based on the findings that the cash inflow reported by the assessee was inflated and could not be substantiated, leading to the dismissal of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 712607 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2017-2018
• Other Referred Cases: Meat Products of India Ltd.
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Keywords: Bogus
• Section: 147; 148; 133(6)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 370/Coch/2025 Assessment Year: 2017-18 Veeyemar & Co. .......... Appellant 12/1059, Big Bazaar, Calicut-673001, Kerala. [PAN: AACFV 7568 E] vs. ITO, National Facells Centre, .......... Respondent Delhi. Appellant by: None Respondent by: Smt. Leena Lal, Sr. DR Date of Hearing: 02.06.2025 Date of Pronouncement: 31.07.2025 O R D E R This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 09.04.2025 for Assessment Year (AY) 2017-18. 2. Brief facts of the case are that assessee is a partnership firm. Return of income for the AY 2017-18 was filed on 26/03/2018 disclosing income of Rs. 5,85,750/-. Subsequently, the AO formed an opinion that the income escaped assessment to tax and issued Printed from counselvise.com 2 ITA No. 676/Coch/2024 Meat Products of India Ltd. notice u/s. 148 of the Act on 05/07/2019. In response to the notice issued u/s. 148, the assessee filed return of income on 30/07/2019 declaring the same income as shown in original return of income. Against the said return of income, assessment was completed by the AO vide order dated 27/09/2021 passed u/s. 147 r.w.s. 144B of the Act at a total income of Rs. 42,26,563/-. While doing so, the AO made the addition of Rs. 36,40,813/- disbelieving the receipt of cash from debtors, as bogus. 3. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order dismissed the appeal. 4. Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal. 5. I find that during the course of assessment proceedings for the AY 2016-17, the AO reduced the cash in hand shown by the assessee of Rs. 90,22,069/- to 53,81,256/-. The AO disbelieved the version of the assessee that cash received from the debtors as bogus after examining them and issued notice u/s. 133(6) of the Act. Thus, the findings of the AO attained finality as the matter was settled under the Direct Tax Vivad Se Vishwas Scheme, 2024. The AO was of the opinion that inflated cash of Rs. 36,40,813/- which was shown for the year under consideration cannot be accepted. Therefore, the AO was justified in making the addition and added the same to the total income of the assessee as unexplained money. Printed from counselvise.com 3 ITA No. 676/Coch/2024 Meat Products of India Ltd. I do not find any illegality or perversity in the findings of the lower authorities. Accordingly, I find no merit in the ground raised in this appeal, same is dismissed. 6. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 31st July, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 31st July, 2025 vr/- Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin Printed from counselvise.com "