TaxTMI 
TaxTMI 
TaxTMI 
2019 (8) TMI 507
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....erroneous and prejudicial to the interest of the Revenue and directed the AO to treat the entire amount of deposits appearing in the bank account with Corporation Bank, Tanuku as unexplained investment u/s.69 of the Act, after giving an opportunity of being heard to the assessee. 3. The above order passed by the ld. CIT is not challenged by the assessee. Subsequently, the Assessing Officer has passed assessment order u/sec. 143(3) r.w.s. 263, dated 25/02/2015 by issuing a notice dated 07/08/2014. Assessee neither appeared before the Assessing Officer not filed any details. Therefore, the Assessing Officer has completed the assessment as directed by the ld. CIT and the entire amounts deposited in the Corporation Bank to the tune of Rs. 23,31,191/- treated as unexplained investment u/sec. 69 of the Act and accordingly added the same to the total income of the assessee. 4. On appeal, ld. CIT(A) confirmed the order of the Assessing Officer by observing as under:- "6.3 I have carefully considered the submissions of the appellant, the order of the Assessing Officer, and the written submissions of the AR. The addition of Rs. 23,31,191/- made by the Assessing Officer on account of unex....
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.... this also, neither any one appeared nor any submission made or any request seeking adjournment of hearing was received. 11. In the absence of compliance to the show-cause notice, and after carefully considering the material available on record, the issues are decided ex-parte on merits as under (1) Transactions in bank accounts with Corporation Bank : Though the assessee asked for adjournment vide letter dated 23-09-2013, the assessee never responded to the subsequent notice issued. Even to the letters issued by the assessing officer during the assessment proceedings also, the assessee never responded. It is seen from the extracts of the bank account held with Corporation Bank in the joint name of the assessee and his wife that there are cash deposits on various dates and there are withdrawals by way of cheques given to Andhra Sugars Limited and ATM card withdrawals and cheques drawn on Anantha Lakshmi Satyavathi Devi Rice Mill, Sri VV Durga Prasad etc. The total deposits in the bank account are Rs. 23,31,191/- during the financial year 2008-09 relevant to the assessment year 2009-10 in Savings Bank account no.499, which was opened on 07-03-2007 in the name of the assessee....
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....sits appearing In the bank account with Corporation Bank, Tanuku as unexplained investment u/s.69 of the I.T. Act, after giving an opportunity of being heard to the assessee". From the perusal of the order u/s.263 reproduced above, it is clearly evident that enough opportunity has been afforded to the assessee to explain the said deposits, and he explanations given by him in the original assessment proceedings regarding the said deposits pertaining to his son, and the Assessing Officer's action in the original assessment proceedings of considering the said deposits as the business turnover of the assessee, have been examined in detail, and all the explanations given by the assessee have been found to be unacceptable, and therefore, finding the original assessment order to be erroneous, the CIT (Rajahmundry) has directed the Assessing Officer to treat the entire amount of the deposits as unexplained investment u/s.69 of the Income Tax Act, after giving an opportunity of being heard to the assessee. As already discussed above, the said opportunity has been duly accorded to the assessee by the Assessing Officer, and since the assessee has not been able to give any explanations i....
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....lakshmi. Enquiries were conducted with Andhra Sugars Limited and they have furnished copies of two accounts maintained in their books of account in the name of Shri Majeti Mutyala Rao, Tanuku for the period 01-04-2008 to 31-03-2009 wherein the total credits in the name of the assessee are to the tune of Rs. 27,69,374/- + Rs. 15,35,775/- and purchases made at Unit-I, Tanuku and Unit-Ill, Bhimadole. It is seen that the amounts were credited to the assessee's account by Andhra Sugars Limited. It is further seen that the payments made to Andhra Sugars Limited during the April, May, June are not appearing in the statement of bank account of Corporation Bank, Tanuku. Therefore, it is clear that there is one more bank account through which these cheques were issued to Andhra Sugars Limited. Therefore, the assessee was asked to furnish the sources for cash deposits and payments made to Andhra Sugars Limited. It is further seen that some amounts have gone through the account maintained with Andhra Bank, Tanuku, Account No.00C/01/00001652. This account is in the name of the assessee and disclosed in the balance-sheet. Therefore, it is clear that the assessee has done transactions through....