TaxTMI 
TaxTMI 
2025 (8) TMI 1820
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....d as 'Lead case'. 2. The ground of appeal raised by the assessee in ITA No. 186/SRT/2025 (AY 2014-15) is as under: 1. The Ld. CIT(A), NFAC, Delhi has erred and was not just and proper on the facts of the case and in law in confirming the addition of Rs. 2,00,77,16,610/- u/s.69A of the Income tax Act. 3. The ground of appeal raised by assessee in ITA No. 187/SRT/2025 (AY 2014-15) is as under: 1. The Ld. CIT(A), NFAC, Delhi has erred and was not just and proper on the facts of the case and in law in confirming the penalty u/s. 271(1)(c) of the Act. 4. The ground of appeal raised by appellant in ITA No. 188/SRT/2025 for AY. 2015-16 is as under: "1. The Ld CIT, NFAC has erred and was not just and proper on the facts of the case and in law on confirming the addition of Rs.10,79,500/- u/s 69A of the Income-tax Act. 2. the Ld CIT, NFAC has erred and was not just and proper on the facts of the case and in law in confirming the addition of Rs. 8,76,22,375/- u/s 69A of the Income-tax Act. 3. PRAYER 3.1 The addition made by Ld Assessing Officer and confirmed by the Ld CIT(A)- NFAC may be kindly deleted. 3.2 Person....
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.... u/s 69A of the Income-tax Act. 2. The Ld CIT, NFAC has erred and was not just proper on the facts of the case and in law in confirming the addition of Rs.20,50,000/- u/s 69A of the Income-tax Act. 3. PRAYER: 3.1 The addition made by Ld Assessing Officer and confirmed by the Ld CIT(A) - NFAC may be kindly deleted. 3.2 Personal hearing may be granted. 3.3 Any other relief that your honours may deem fit may be granted. 4. The appellant craves leave to add, amend, alter or delete any or all of the above grounds of appeals." 9. The ground of appeal raised by appellant in ITA No.193/SRT/2025 for AY. 2017-18 is as under: "1. The Ld Faceless Assessing Officer has erred and was not just and proper on the facts of the case and in law in confirming the Penalty u/s 271AAC(1). 2. PRAYER: 2.1 The penalty imposed may be kindly deleted. 2.2 Personal hearing may be granted. 2.3 Any other relief that your honours may deem fit may be granted. 3. The appellant craves leave to add, amend, alter or delete any or all of the above grounds of appeals." ITA No.186/SRT/2025 (AY.2014-15): 10. ....
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.... and notice u/s.148 of the Act was issued on 31.03.2021. No return was filed in response to the above notice. Thereafter, notice u/s 142(1) of the Act along with detailed questionnaire was issued to the assessee on 19.08.2021 and served upon the assessee. The case of the appellant was finally transferred the ITO to Silvassa Ward, Silvassa (AO). The AO issued notices u/s.142(1) of the Act along with detailed questionnaire through Speed post, but the same was returned 'unserved' with the remark - 'address is not available'. The Inspector was deputed to make enquiry about assessee and serve the notice on him. Consequently, notice had been served by affixture vide Panchnama dated 16.02.2022 to the appellant on the address mentioned in the KYC details provided by the Central Bank of India. 10.2 During the course of enquiry by the Investigation Unit and during assessment proceedings, several opportunities of being heard were granted to the appellant by way of statutory notices, viz., summon u/s.131 of the Act dated 05.01.2021 and 19.01.2021 and notices u/s.142(1) of the Act; however, appellant remained non cooperative and no details were furnished by him. Besides, no r....
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....ent, the management of the company, without his knowledge, obtained another PAN as BCNPA1466N in his name with his forged signature. Under this new PAN (BCNPA1466N), various bank accounts were opened and voluminous transactions were done. It was also submitted that the appellant was filing his return of income under his regular PAN: AFXPA3729A, declaring the regular income earned by him. The transactions under the new PAN: BCNPA1466N, unknown to him, was not included in his return of income. On receiving a call from the IT Department in January, 2023, the appellant visited the office on 19.01.2023 and he came to know that assessment in his name had been completed and that there was huge demand of income tax on him. He then found that the PAN on which the assessment was completed was also unknown to him. His statement was also recorded on 19.01.2023 and was finally concluded on 10.03.2023. Subsequently, upon receiving copy of assessment order on 04.08.2023, the appellant filed the appeal before the CIT(A). The appellant stated that only apparent grounds were raised and further grounds will be raised after obtaining details from AO. 10.4 The appellant raised various grounds on val....
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....ch, the AO had formed a belief that the appellant's income had escaped assessment, and accordingly, he issued notice u/s.148 of the Act on 30.03.2021. The CIT(A) held that notice u/s.148 of the Act was issued as per the provisions of the Act by complying with all the requirements. Accordingly, this ground of appeal was dismissed by Ld. CIT(A) by holding that the ground raised by the appellant without any basis and was a mere allegation to thwart the proceedings. 10.7 The other grounds of appeal raised by the appellant were with regard to the issue of addition made by the AO of Rs.200,77,16,609/- treating the cash deposits/credits during the year as unexplained money u/s.69A of the Act. The appellant had submitted that the transactions of the cash deposits and credits in his bank accounts were not undertaken by him. He submitted that PAN had been forged by his employer and he had no idea about it. He had filed police complaint in this matter. The addition made by the A.O was arbitrary and unjustified. He also submitted that the AO had not independently applied his mind to the facts of this case and had merely taxed the entire cash deposits/credits without any basis. He conten....
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....ion taken against such complaint. The mere production of India Post acknowledgement on the complaint could not be considered as a valid police complaint. It was also submitted by the appellant that an unknown person had forged his documents to obtain a new PAN, whereas during the appellate proceedings, it was contended by the appellant that his employers had forged the PAN under his name. 10.10 It was observed by the CIT(A) that unexplained cash deposits and credits reflected a clear case of concealment of income, falling under the purview of Section 69A of the Act. The burden of proof was on the appellant to establish the legitimacy of these transactions, which had not been discharged. The appellant had also failed to prove the nature and source of the alleged transactions during the appellate proceedings with any clinching evidence. The CIT(A) also distinguished the facts of the cases relied upon by assessee and held that assessee has not proved that the documents, i.e., PAN, bank accounts were forged. In view of the above facts, the CIT(A) dismissed the appeal. 11. Aggrieved by the order of CIT(A), the appellant filed appeal before this Tribunal. The learned Authorized Rep....
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....ot elevate the submission to the status of a genuine, pursued police complaint. It is further stated by ld. CIT-DR that in the police complaint, there is no mention regarding the PAN being forged by his former employer. The appellant's different stand at different forums raises suspicion and doubt on the genuineness of the police complaint filed by him. He, therefore, submitted that in view of the above stated facts and since sufficient opportunities of being heard and to file necessary details/submission regarding his contention have already been provided to the appellant both at the AO and CIT(A) stage, therefore, setting aside the case back to the file of the AO would serve no purpose. 13. We have considered the rival submissions and carefully perused the assessment order, appellate order the remand report and the material available on record. The appellant has raised only one ground, challenging the addition of Rs.2,00,77,16,610/- u/s 69A of the Act. The core issue revolves around whether the impugned bank accounts and second PAN were genuinely misused by others without the appellant's knowledge or whether the appellant is attempting a post-facto denial of his inv....
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....he PAN and his name, no acknowledgment from the police station was furnished nor other details viz., the Case number registered with police, status of the complaint and action taken against such complaint, have been furnished by the appellant before the lower authorities or the Tribunal. The purported police complaint is totally unconvincing. No FIR number, investigation status, acknowledgment by police authorities, or response from investigating agencies, were ever furnished. Only a postal acknowledgment of having sent a letter to the police is on record. Such an acknowledgment does not elevate the purported submission to the status of a genuine, pursued police complaint. Further, inconsistent stands have been taken by the appellant. Before the CIT(A), the appellant alleged that his employer forged his PAN, whereas in the police complaint, it is submitted that an unknown person forged the documents. This apparent contradiction further weakens the credibility of the defense. Nothing new has been submitted by the appellant before the Tribunal. As discussed earlier, the appellant did not even try to rebut the findings of AO in the remand proceedings and chose not to join the issue, i....
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....roperty, namely, bullion, money etc. would be deem to be the income of the assessee. In this case, the assessee is the owner of the bank accounts were cash deposits and credit entries of Rs. 200,77,16,609/- were made during the year. Such money is not recorded in the books of account of the assessee. The appellant failed to offer explanation about the nature and source of acquisition of the money in the impugned bank accounts. Further, the explanation offered by the assessee was, in the opinion of AO, not satisfactory. Hence, all the ingredients of section 69A are satisfied, making the assessee liable to tax u/s 69A of the Act. The findings of the AO has been confirmed by the CIT(A) after calling for a remand report from the AO, which the assessee could not rebut despite being granted reasonable and adequate opportunity of being heard. Before the Tribunal also, the appellant has not advanced any other explanation or produced any new material so as to interfere with the findings of the AO, which was duly confirmed by the CIT(A). 22. Useful reference may also be made to the decision of the Hon'ble Supreme Court in case of CIT vs. K. Chinnathamban, 292 ITR 682 (SC) where the Ho....
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.... provisions of section 271(1)(c) of the Act for concealment of income. The addition was confirmed by the CIT(A). The appellant did not provide any reason or explanation before the CIT(A) to prove that there was reasonable cause as provided u/s 273B of the Act. Hence, he held that the AO had rightly invoked penalty provisions u/s 271(1)(c) of the Act for concealment of income and rightly levied the penalty under the said section. Accordingly, he dismissed the appeal. 27. Penalty under section 271(1)(c) of the Act is clearly attracted in this case. The levy of penalty under section 271(1)(c) is justified when the assessee either conceals particulars of income or furnishes inaccurate particulars. In the instant case, the appellant not only failed to file the return of income, but also withheld material facts and offered no explanation when repeatedly prompted during the proceedings before the lower authorities. It was only at a belated stage after conclusion of assessment that the appellant made written submission before CIT(A). The CIT(A) called for the remand report and forwarded the remand report of AO to the appellant for rebuttal, which was never responded to. Aa a result, the....