SRI RAM VYAS Vs. INCOME TAX OFFICER
INCOME TAX APPELLATE TRIBUNAL
Sri Ram Vyas
INCOME TAX OFFICER
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SAKTIJIT DEY,JM. -
(1.) THIS appeal by the assessee is directed against the order passed by the Commissioner of Income -tax (Appeals) VI Hyderabad dated 24.1.2013 for the assessment year 2009 -10.
(2.) THOUGH as many as six grounds have been raised by the assessee, effective grievance of the assessee in this appeal is against addition under S.69 to the extent of Rs.16,92,176 sustained by the CIT(A).
(3.) FACTS of the case in brief are the assessee is an individual deriving income from the business of confectionery and namkeen items, apart from income by way of interest and items of miscellaneous
nature. He filed his return of income for the assessment year 2009 -10 on 21.8.2009, admitting taxable
income of Rs.1,57,200, after claiming deduction u/s. 80C for Rs.1,00,000. During the course of
assessment proceedings, the Assessing Officer observed that there were credits into the bank account
maintained with ICICI Bank, Begumpet Branch, in the names of himself and his mother, Smt.Padma Bai,
wherein the total credits for the year under consideration as quantified at Rs.29,70,000. It was the claim
of the assessee before the Assessing Officer that the gross sales of business of Rs.25,60,000,
miscellaneous receipts of Rs.37,400 and interest of Rs.18,000, among others constituted the sources for
the said amount of deposits aggregating to Rs.29,70,000. The Assessing Officer observed that the
assessee failed to furnish the details of the turnovers, etc. reflected through the relevant columns of
returns of income and failed to produce the relevant details such as purchase bills or sale bills, related to
the business transactions. He further observed that interest receipts as well as miscellaneous receipts are
also not indicated in the relevant columns of the return. The Assessing Officer also noted that the rental
receipts and expenses related to property such as municipal taxes are related to his mother viz. Smt.
Padma Bai. In this view of the matter, and in the absence of any details or statement of affairs in relation
to other transactions, the Assessing Officer treated the entire credits of Rs.29,70,000 as unexplained and
accordingly made addition under S.69 of the Act, while completing the assessment on a total income of
Rs.32,26,200, vide order dated 23.11.2011 passed under S.143(3) of the Income -tax Act, 1961.
On appeal before the CIT(A), the assessee blaming the Authorised Representative at the stage of assessment proceedings for not representing his case by furnishing proper information/explanations on
the credits, prayed for fresh opportunity of examining the information/evidence related to such credits by
treating the submissions as additional evidence or submissions. The CIT(A) accordingly gave opportunity
to the assessee before the Assessing Officer, and after considering the remand report of the Assessing
Officer, proceeded to dispose of the appeal, observing at the outset that as could be seen from the
remand report, business receipts of the assessee and the sources for cash deposits which were shown as
cash withdrawals made earlier are reported to be verified and no objections were raised by the Assessing
Officer, as against the disbelieving of such explanations at the time of assessment proceedings.;
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