TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 694
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....he Assessing Officer. 3. The Learned Commissioner of Income Tax (Appeals) (NFAC) on the facts and in the circumstances of the case and in law erred in not appreciating the facts narrated by the Assessing Officer in the Assessment order and also not appreciating the facts and submissions made during the course of appellate proceedings in a proper perspective, ignoring the facts that cash deposits made of Rs. 2,86.80,200 in the bank account of Jitendra K Palan and not in the bank account of the appellant 4. The Learned Commissioner of Income Tax (Appeals) (NFAC) on the facts and in the circumstances of the case and in law, failed to appreciate the fact that an identical issue arose in the appellant's own case on the same set of facts for A.Y.2013-14 and while completing the assessment for A.Y. 2013-14, after considering the same facts, the assessing officer has not made such additions in the appellant's own case. 2. Before us, the Ld. counsel for the assessee also filed an additional ground, which is reproduced as under: In the facts and circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals) has erred in sustaining the....
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....t, travelled to his own concerns. The relevant finding of ld CIT(A) is reproduced as under : "5.1. The order of the Ld. AO passed u/s 144 r.w.s. 147 dated 05.12.2019 as well as the grounds of appeal and statement of facts and written submission filed by the appellant has been carefully considered. In essence, all the substantial grounds taken by the appellant relate to the action of the Ld. AO regarding addition of Rs. 2,86,80,200/- on account of cash deposit. 5.2 During the course of appellate proceedings, the appellant assessee was given several opportunities vide notice of hearing/letter dated 17.10.2023, 27.10.2023, 06.11.2023 and 13.12.2024 to represent the case by uploading written submission along with supporting document(s) if any. Appellant has submitted some details three times, which is not related to strengthening the grounds of appeal. However, the appellant did not avail the opportunities to counter the findings of the Ld. AO and hence appellant's reluctancy to comply to the notices leads to the presumption that he has either nothing to explain in this regard or is not interested to continue the appellate proceeding and thus has no objection at p....
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.... for non-attending hearing inferring that the appellant is not effectively pursuing the appeal. 5.4 In this regard, the decision of the Hon'ble High Court of Mumbai in the case of M/S Chemipol us Union of India, Central Excise Appeal No.62 of 2009 may further be referred to wherein the Hon'ble Court clearly held that every court, judicial Body or Authority, which has a duty to decide a case between two parties, inherently possesses the power to dismiss the case in default. 5.5 On merits also, the appellant has no case. The main ground taken by the appellant relates to addition of Rs. 2,86,80,200/- on account of cash deposit of the I.T. Act, 1961. It is seen from the assessment order that the appellant had not filed return of income for AY 2012-13 though he had made cash deposits to the tune of Rs. 2,86,80,200/- in his current Bank account maintained during the FY 2011-12. In view of the same the case was reopened by issuing notice u/s 148 of the Act and in response to the said notice the appellant had not filed return of income for AY 2012-13. During the course of assessment proceedings, the Ld. AO observed that the appellant had deposited cash amounting t....
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....ies in respect to the additional ground challenged. We find that assessee has not filed any copy of the reasons recorded before us and the Ld. counsel for the assessee only referred to the extract of the reasons recorded as reproduced by the Assessing Officer in the assessment order. Said extract is reproduced as under: "Information has been received from office of Deputy Director of Income Tax (Investigation), Unit-5(1), Mumbai vide letter No. DDIT(Inv)/Unit-5(1)/Sharing of Info/Jitendra/2018-19 dated 15.03.2019 received in this office through designated e-mail on 22.03.2019 regarding a above said assessee is running a proprictorship concern M/s Neelay Packers and Movers in which he is engaged in the business of logistic service like relocating, moving of house effects. The assessee, Jatin Harishn Sotta, had operated the bank current account of Jitendra K. Palan and credited the same with 92% cash deposit which is to ihe tune of Rs. 2,86,80,200/ - during F.Y. 2011-12. Further, the credit by means of cash deposit were immediately transferred through RTGS to M/s Mahendra International and M/ s D.D.M Implex during the F.Y 2012-13. Since the assessee is a non-filer, the sourc....
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....rised to administer an eath or affirmation. Wheaver, being legally bound by an oath [or affirmation) to state the truth on any subject to any public servant or other servant or other person as aforesaid, touching the subject, any belleve to be true, shall be punished with Imprisonment of either description for a term which may extend to three years, and also be liable to fine. 8. 177. Furnishing false information, Whoever, being legally bound to furnish information on any subject to any public servant, as furnishes, as true, information on the subject which he knows or has reason to believe to be false, shall be punished with simple Imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both. C. Or, if the information, which of the commission of an offence, or is required for the purpose of preventing the commission of an offence, or in order to the apprehension of an offender, with imprisonment of either description for a term which may extend to two years, or with fine, or with both". D. Further, I am also showing you the provisions of section 277A of the Income Tax Act, 1961, which provides....
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....ed in English Language. Q.4 Please state your educational qualifications and the details of your employment. Also furnish your mobile number and email id. Ans. Sir, I am 10th class passed. Presently, I am Proprietor in M/ s Neelay Packers and Movers having its registered office at E-406, Pinewood, Vasant Garden, Swapna Nagari (Near Tara Singh Garden) Mulund (West), Mumbai 400 080. My contact detail is 876762627288108516272 and email id is [email protected]. Q.5 Please state the details of your family members and their source of income. Ans. Sir, my family details are as under: Sr. No. Name Relationship Age (yrs) Educational Qualification Source of income/ profession 1. Purnima Jitendra Palan Wife 34 12th Pass House Wife 2. Neelay Jitendra Palan Son 11 Studying in std. 6th Student Q 6. What is your PAN number and slate whether you regularly file return of Income? Ans. My PAN number is AABPP08158. Since my income is below taxable Bit, I do not me return of income. My inst relum of income was filed for A.Y. 2009-2010 Q.7 Please explain the nature of business under....
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....t account with Bank of India Mulund West Branch. Ans/Yes sir. I have deposited cash in my current account 006920110000369 with Bank of India Mulund west branch. Q.16. What amount you have deposited in your current account 006920110000369 with Bank of India Mulund west branch out of your business income from Mis Neelay Packers and Movers from F.Y. 2010-11 onwards. Ans. The cash received from household shifting work after making payment to daily labourers and transporter maximum sum balance per contract Rs. 400/- remains which is used for my household expense. However I have allowed one of my coaching class friend (Haribhai classes at Mulund - now closed) Shri Jatin Sotta to use my current account with Bank of India in F.Y. 2011-12 as he promised me to get housing loan. My account was used by him till F.Y. 2012-13. Q.17 Who is Mr. Jatin Sotta. Give his complete address (residence and office) with contact details. Ans. Mr. Jatin Sotta, staying in premise at Devidayal Road, Mulund West, Mumbai Presently the premise is in redevelopment hence his whereabouts not known. He is proprietor of Mahendra International He is in impart export business.....
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....se state whether any cash belonging to you or other party has been deposited by you in bank account other than current account 006920110000369 with Bank of India, Mulund west in India. Ans. I state on oath that such transaction are not done by me in any other bank account. I have only one current account 1.8 006920110000369 with Bank of India, Mulund west branch, Mumbai in which cash is deposited in my presence by Jatin Sotta. My other account is overdraft account mentioned above. No such transaction is made in overdraft account. Q.25 Please state how much commission did you received in each cash deposit transaction from Jatin Sotta. Ans. I have not received any commission from him. I have just allowed him to use by current account i.e. 006920110000369 with Bank of India, Mulund west branch, Mumbai as he promised me to help me getting loan. Q.26 Please state why the cash deposited in your current account 006920110000369 with Bank of India, Mulund west branch, Mumbai should not be brought to tax in your hand. Ans. Sir, I already stated on oath that the cash deposited in my current account is belonging to Jatin Sotta. He used to contact me....
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....eceipts; it therefore constitutes logical and cogent material to trace the origin and application of funds. Reliance on such a statement for forming reasons to believe is legally sustainable. 7.4 A reopening founded on mere parroting of an investigational conclusion - without independent application of mind by the AO - gives rise to the objection of borrowed satisfaction. That is not this case. The record shows (a) receipt of information from the Investigation Wing; (b) verification of bank entries; and (c) reproduction of relevant portions of the statement of the third-party account-holder. The AO did not simply adopt a template; he applied the material to the facts of the assessee (bank trail showing transfers to the assessee's concerns) and recorded reasons accordingly. Thus, the AO's belief was his own, informed by admissible material, and cannot be characterised as borrowed satisfaction. 7.5 In view of aforesaid discussion, we reject the arguments of the Ld. counsel for the assessee and uphold the reassessment proceedings. 8. As far as addition on merit is concerned, the Ld. counsel for the assessee submitted that cash was deposited in the account belonging to....
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....ach assessment year is a distinct unit governed by facts and material available for that year. The invocation of a subsequent acceptance in a later year cannot, without more, disentitle the Revenue from pursuing a legitimate claim in an earlier year where cogent material existed. It is a trite law, as enunciated by the Hon'ble Supreme Court in Distributors (Baroda) Put. Ltd. v. Union of India [155 ITR 120 (SC)], that there is no heroism in perpetuating an error; each assessment year is a separate unit, and the principle of consistency cannot override substantive justice where tangible material establishes taxability. 8.3 The assessee's failure to file the regular return for the year under consideration, coupled with repeated non-compliance with notices under section 142 and non-appearance to explain the crucial issue, is material. The law permits the drawing of an adverse inference where a taxpayer, despite being afforded opportunities, wilfully refrains from disclosing material facts or producing evidence. Non-cooperation in the face of clear documentary leads weakens the assessee's case and strengthens the reasonableness of the AO's conclusion. 8.4 Having up....