TaxTMI 
TaxTMI 
2019 (5) TMI 1164
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....ome Tax Appellate Tribunal dated 16.8.2018 dismissing the Assessee's Appeal for the Assessment Year 2009-2010 upholding that the addition made by the Assessing Authority under Section 69 of the Act as unexplained investment in the 5 Credit Cards of the Assessee, which were allowed by the Assessee to be used by his friend Mr.Neelamegan and the total usage amount of Rs. 34,86,141/- was added as undisclosed income in the hands of the Assessee as unexplained income/expenditure:- "i) Whether on the facts and circumstances of the case, was the Tribunal correct in upholding the decisions of the lower authorities especially when the opportunity of cross examination is not provided to the Assessee? ii) Whether on the facts and ....
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....e credit cards were used. Further, before the Assessing Officer, the assessee vide his letter dated 19.2.2015 stated that the credit card transactions are not real transactions of expenses and it is loan transactions. However, Mr.Neelamegan who is mentioned as agent in swiping credit card in various stores has refused having used assessee's credit card as well as having taken huge loan from the assessee and thus, the assessee's statement was not proved. Since the basic issue of the usage of credit cards by Shri.Neelamegan was not proved, the usage of credit card by the assessee for Rs. 34,86,141/- was taken as unexplained expenditure and the Assessing Officer treated the same as deemed income as per section 69 of the Act and hence, ....
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.... Decors, M/s.C.R.Agencies, Mls.Jaya Medicals and Mls.Aruna Pharmacy, where the credit cards were used. So far as credit card transactions, Shri.Neelamegan has denied the entire transaction. Since the assessee failed to establish that Shri.Neelamegan used assessee's credit card and repaid the amount, we find that the addition made by the Assessing Officer was rightly confirmed by the learned CIT(A). We do not find any infirmity in the order passed by the learned CIT(A). Accordingly, the ground raised by the assessee stands dismissed." 3. Learned counsel for the Appellant-Assessee, Mr.Sathyanarayanan has submitted before the Court that the Original Assessment Order was passed by the Assessing Authority on 28.12.2011 for the Assessment ....
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....however it returned unserved with a remark "LEFT'. Summons u/s. 131 was served to Mr.Neelamegan through affixture in the address. A sworn statement was recorded from Mr.Neelamegan, wherein he insisted that no credit cards can be used by a third party as signature of the card holder is mandatory while using credit card. Hence he objected having used the credit card of the assessee and also emphasized that it is not all possible to use the credit card by a third party. Mr.Neelamegan also stated that he has no idea of four stores-namely: M/s.Aakash Decors, M/s.C.R.Agencies, M/s.Jaya Medicals, M/s.Aruna Pharmacy, where the credit cards were used. The records of Mr.Neelamegan (AJBPM9737C) was collected from the concerned Ju....
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....sessing Authority took a Sworn Statement of Mr.Neelamegan without affording the Assessee an opportunity of cross-examining the said person viz., Mr.Neelamegan, who was his friend and colleague in the Insurance Company in which the Assessee was serving as Legal Officer and the Credit Cards were allowed to be used by his friend Neelamegan. All the credit entries came through NEFT Transfers from various Firms viz., M/s.Aakash Decors, M/s.C.R.Agencies, M/s.Jaya Medicals, M/s.Aruna Pharmacy as repayment of loans taken by Mr.Neelamegan from the Assessee by usage of his Credit Cards. The Assessing Authority, however, disbelieved the said version on the basis of the Affidavit given by Mr.Neelamegan that he never used the Credit Cards and took loan ....