2023 (8) TMI 919 - AT - Income Tax

Appeal Dismissed Upholding Assessment Order for AY 2011-12

Shri Sanjeev Tomar Versus Income Tax Officer-2 (4), Agra

Shri Sanjeev Tomar Versus Income Tax Officer-2 (4), Agra - TMI Issues involved:The issues involved in the judgment are the denial of liability for assessment, sustaining additions made by authorities, reliance on statements without examination, legality of assessment order, incorrect assumptions, double addition in bank accounts, variation in returned income, and lack of opportunity for cross-examination.Denial of liability for assessment:The appellant denied liability to be assessed at income of Rs. 78,31,850 and objected to the addition of Rs. 75,81,000, along with tax and interest charges. The appellant argued that the authorities erred in making and sustaining the addition without proper examination and cross-examination, leading to an unjustified assessment order.Sustaining additions made by authorities:The appellant contested the addition of Rs. 65,21,000 as sale proceeds of trading receipts and Rs. 10,60,000 as agriculture receipts. The appellant, acting as a commission agent, claimed that the deposits in bank accounts were related to commission received for sale of agricultural produce. However, the authorities found discrepancies in the evidence provided by the appellant, leading to the rejection of the appellant's claims.Reliance on statements without examination:The appellant criticized the assessing officer for relying on a statement without examining the individual and their books of accounts, as well as denying the opportunity for cross-examination. The appellant argued that the additions and assessment order were based on incorrect assumptions and lacked adequate hearing opportunities, violating principles of natural justice.Legality of assessment order:The appellant raised concerns about the legality of the assessment order, citing it as bad in law, illegal, unjustified, and contrary to facts. The appellant emphasized the need for proper examination of evidence and adherence to legal procedures in making additions to the income.Double addition in bank accounts:The appellant argued that the assessing officer should have calculated the peak credit in all bank accounts to avoid double addition in respect of deemed income. The appellant highlighted the need for a fair assessment that considers all relevant factors to prevent inaccuracies in the final income determination.Variation in returned income:The appellant objected to the assessment order's variation in the returned income, claiming that it was against the facts of the case. The appellant sought to quash the additions made by the authorities, emphasizing the importance of a lawful and accurate assessment process.Lack of opportunity for cross-examination:The appellant raised concerns about the lack of opportunity for cross-examination on the testimony used to make additions. However, the court found that the appellant did not seek permission for cross-examination and that the evidence presented was found to be fabricated, leading to the dismissal of the appeal.The appeal filed by the assessee was dismissed by the Appellate Tribunal ITAT Agra, upholding the assessment order for the Assessment Year 2011-12. The judgment addressed various issues raised by the appellant regarding the denial of liability for assessment, sustaining additions made by authorities, reliance on statements without examination, legality of the assessment order, double addition in bank accounts, variation in returned income, and lack of opportunity for cross-examination. The court found that the assessing officer's actions were justified based on discrepancies in the evidence provided by the appellant, leading to the dismissal of the appeal.