Decided on May 23,2014

Sri Ram Vyas Appellant


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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