TaxTMI 
TaxTMI 
2025 (11) TMI 726
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....eration and appellant carried on the business activity and the sales during the year amounted to Rs. 1,55,09,900/- and the said amount was available with the appellant to deposit the same into the bank account. 4. The Ld. CIT(A) ought to have considered the evidences filed before him and deleted the addition made by the Assessing Officer. 5. Any other ground /grounds that may be urged at the time of hearing." 3. The assessee has raised additional grounds as under : " The order of assessment is invalid as the notice u/s. 148A(b), the order passed u/s. 148A(d) and the notice u/s. 148 was issued by the IncomeTax Officer, Ward-1, Kothagudem who has no jurisdiction and all the consequent proceedings are invalid as held by the Hon'ble High Court of Telangana in the case of Kanakala Ravindra Reddy Vs. ITO stated supra. The Ld. CIT(A) ought to have annulled the assessment order for want of jurisdiction." 4. In this context the Ld. AR submitted that the additional ground so raised are admissible in view of judgment rendered by the Hon'ble Supreme Court in the case of National Thermal Power Co. Ltd. v. CIT (1998) 229 ITR 383 (SC). The prayer for admi....
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....the following effect : 7. Decision I have carefully considered the facts of the case, contention of the appellant relied/ cases mentioned and order passed by the LAO against which appeal has been preferred. The brief facts of the case are that the appellant had not filed ITR for A.Y. 2018-19. Subsequently, the case was reopened by issuing a notice u/s. 148 with the specific reason to verify the source of cash deposit of Rs. 1,36,25,180/- in the bank account of appellant. During the course of assessment proceedings, a series of notices u/s. 142(1) were issued on various dates as recorded in the body of the assessment order. However, none of the notices were responded to by the appellant accept the show-cause notice dated 04.01.2024 submitting as below: "The assessee is doing business in soft drinks purchase and sales etc., and filed return of income on 13.05.2022 with acknowledge number 616371250130522 in response to 148 notice and the cash deposits apparent in banks represents by goods sale proceeds and other business transactions only hence I request you it may consider as turnover of business necessary evidence I will furnish within few days." ....
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....uth Construction Pvt Ltd [(2013)357ITR197 (Del)],"it involves three ingredients, namely, the proof regarding the identity of three applicants, their creditworthiness to purchase the shares and the genuineness of the transaction as a whole". 7.1.4 That is the approach adopted by Hon'ble Courts above all along. In the case of CIT v. United Commercial and Industrial Co (P.) Ltd [1991] 187 ITR 596 (Cal)], Hon'ble Calcutta High Court has held that under the scheme of Section 68 "it was necessary for the assessee to prove prima facie the identity of creditors, the capacity of such creditors and lastly the genuineness of transactions". 7.1.5 Similarly, in the case of CIT v. Precision Finance (P.) Ltd [1994] 208 ITR 465 (Cal)], it was observed that "it is for the assessee to prove the identity of creditors, their creditworthiness and genuineness of transactions". 7.1.6 While examining the issue of genuineness of the transactions entered into by the assessee, it is also important to keep in mind Hon'ble Supreme Court's observation, in the case of CIT v. Durga Prasad More [(1971) 82 ITR 540 (SC)], to the effect that "Science has not yet invented any....
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.... to be the income of the assessee for such financial year." 7.1.9 That a bare perusal of the aforesaid deeming sections therein reveals that an addition under the said statutory provision can be made where the assessee is found to be the owner of a bank account in which the credits were recorded outside the regular books of account maintained for any previous year. Thus, the very sine qua non for making of an addition under Section 69A pre supposes a credit of the aforesaid amount in the 'bank account' held for the previous year. This is the settled position of law that a statutory provision has to be strictly construed and interpreted as per its plain literal interpretation, and no word howsoever meaningful it may so appear can be allowed to be read into a statutory provision in the garb of giving effect to the underlying intent of the legislature. In the impugned case the appellant is merely seeking adjournments without filing any cogent evidence of source of cash deposits in his bank account. 7.1.10 Now, coming to the facts of the impugned case, the AO has given clear cut finding that the appellant had failed to file any documentary evidence in support ....
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....earned Departmental Representative ("Ld. DR") also admitted that, the issue is presently pending before the Hon'ble Supreme Court in the case of Hexaware Technologies Ltd., and requested to keep the issue open. 9. We have considered the rival submissions and perused the paper book, including notice issued under section 148A(b), 148A(d) order, and 148 notice (page nos. 1 to 5 of the paper book). Since both the parties admitted that the issue regarding validity of notice is pending before the Hon'ble Supreme Court in Hexaware Technologies Ltd., we keep this ground open and restore it to the file of the Ld. AO to follow the outcome of the decision of the Hon'ble Supreme Court in the case of Hexaware Technologies Ltd., while giving effect to the present order of the Tribunal. 10. On merits, the Ld. AR submitted that, the assessee is engaged in the business of purchase and sale of soft drinks. Inviting our attention to the Audited financial statements for the relevant year placed at page nos.8 to 10 of the paper book, submitted that the turnover of the assessee during the year under consideration was Rs. 155,09,900/-. He also submitted that, the copy of the audited fin....