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2015 (6) TMI 799 - ITAT HYDERABAD

2015 (6) TMI 799 - ITAT HYDERABAD - TMI - Unexplained deposits in bank account - ex-parte order u/s 144 - Held that:- Since the AO has verified only one account namely ICICI Bank and has passed the assessment order u/s 144 as ex-parte order and also that the assessee has informed about the Vijaya Bank a/c only before the CIT (A), we are of the opinion that the matter should be remitted back to the file of the AO to verify the bank accounts. Since the assessee has provided copy of the bank statem .....

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referred by the assessees directed against separate orders of the Commissioner of Incometax( Appeals)-VI, Hyderabad dated 20.11.2013, for the assessment year 2009-10. Since certain common issues are involved, these appeals are being disposed of with this common consolidated order for the sake of convenience. ITA No.1312/Hyd/2014-Shri Sama Srinivas Reddy 2. In this appeal, there is a delay of 126 days in filing the appeal before the ITAT. The reasons given by the petitioner is as follows: For the .....

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llate order was served on the said Advocate on 4.1.2014. The receipt of the appellate order was not in the knowledge of the petitioner. However, when the TRO issued notice u/s 226(3) of the I.T. Act on 4.6.2014, he came to understand through Tax Recovery Officer that the appeal was already decided by the ld CIT (A). There was no advice from the Advocate as to the further course of action against the order of the ld CIT (A) and information regarding the date when such order was served on him. The .....

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8.7.2014 as the Advocate was out of station. Therefore, the appeal is being filed on 9.7.2014 with a delay of 126 days. The petitioner humbly submits that the delay is for the reasons submitted above which are beyond the control of the petitioner and is not intentional. The petitioner, therefore, requests the Hon'ble ITAT to kindly condone the delay and pass appropriate orders in the matter . 3. We find the reasons for the delay in filing the appeal are genuine and hence condone the delay. 4 .....

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s unexplained income of the assessee and passed an ex-parte order u/s 144 of the Income Tax Act. 6. Aggrieved, assessee preferred appeal before the CIT (A) objecting to the ex-parte order and submitted that he was not provided an opportunity of being heard and the amounts and the deposits are explainable as the income was earned during the year by the assessee and the assessee was having cash on hand. It was explained that the assessee earned income through various sources, such as rents, busine .....

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t the amount of ₹ 12,29,026 shown in the revised computation, thereby inflating/increasing the amounts by ₹ 5,18,000. Similarly, it was submitted by the AO that there were no appropriate evidence as regards to the rental income of ₹ 10,07,114/- and agricultural income of ₹ 1,50,000 except the furnishing of computation of rental income and the pass books for agricultural lands. Subsequently, a revised remand report was furnished indicating the contents/entries of one more .....

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eceipts are shown at ₹ 13,28,016 as against ₹ 10,07,114 shown in the return of income, which means the assessee has understated the rental receipts by ₹ 3,20,902 which was further observed to be considered as undisclosed income under the head income from house property . Regarding the rental receipts, it was further observed that no such receipts were deposited into Andhra Bank account, while an amount of ₹ 2,46,208 were credited by way of cheque, representing the rental .....

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laims for deduction under Chapter VI A amounting to ₹ 1,24,000. 9. In the rejoinder to the remand reports, assessee submitted that during the year an amount of ₹ 7,11,026 was earned as commission in real estate business in which the receipts were both in cash and cheques, without assessee involving in the purchase and sale of any property. 10. The CIT (A) after discussing elaborately at para Nos. 5.4 and 5.5 of his order concluded as follows: …….. Thus, the additions st .....

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er, the amount of ₹ 3,20,902 as pointed out by AO in remand report being the difference between rental receipts as per 26AS (Rs.13,28,106) and the amounts offered for tax vide the return of income (Rs.10,07,114) may also represent the unexplained income of the appellant, being the excess rental receipts not offered for tax. However, such treatment is directed to be as per the outcome of the further verifications of the information on record vis-à-vis the information in 26AS. Subject .....

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he credits of ₹ 8,80,668 with Vijaya Bank instead of directing that amount of ₹ 2,46,208 is to be deleted by the AO after verification of the credits. It was also submitted that the CIT (A) erred in directing the AO to verify the addition of ₹ 3,20,902 in Andhra Bank. 12. It was also submitted by the ld Counsel for the assessee that an amount of ₹ 25,73,902 which has been deposited on various dates in Andhra Bank account are not taxable amount, because the amount of ͅ .....

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planations offered by the assessee. 13. The ld DR raised no objection for the matter to be sent back to the file of the CIT (A) to verify the deposits/withdrawals in Vijaya Bank. 14. In these circumstances, since the AO has verified only one account namely Andhra Bank and has passed the assessment order u/s 144 as ex-parte order and also that the assessee has informed about the Vijaya Bank a/c only before the CIT (A), we are of the opinion that the matter should be remitted back to the file of t .....

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the petitioner is as follows: For the A.Y under consideration, he filed the return of income on 31.8.2009 admitting an income of ₹ 3,50,490. AO completed the assessment u/s 144 of the I.T. Act determining the total income at ₹ 41,29,490. Aggrieved with the order of assessment, the petitioner filed an appeal before the CIT (A)-VI Hyderabad. The said appeal was disposed of vide order in Appeal No.281/2011-12(CIT(A)-VI dated 20.11.2013. The representation of matter before the CIT (A) wa .....

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en such order was served on him. The date of service of the order of the CIT (A) was to be ascertained from the office of the CIT (A). When the petitioner came to know the matter through the notices of the TRO, he decided to change the Counsel. There was a delay on the part of the Advocate in returning the files to the petitioner. The files were returned to the petitioner in the last week of June, 2014. The petitioner, thereafter consulted another Advocate in the first week of July, 2014 and the .....

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enuine and hence condone the delay. 18. Briefly stated, the assessee is an agriculturist and is working as a Real Estate Agent. He is also earning income from business profits apart from income from property and agricultural income. AO observed that an amount of ₹ 37,79,001 was deposited in cash into SB account with ICICI Bank on various dates. In the absence of any compliance to the notices issued and any explanation from the assessee regarding the cash credits, AO treated the same as une .....

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dence, the same was referred to the AO for necessary verification. As per the report of the AO, explanation of the assessee is without any proper evidence and reasoning. Further as per the AO the gross receipts of the business are only ₹ 3,71,150 as per the return of income filed by the assessee as against the amount of ₹ 10,88,650 shown in the revised computation, thereby inflating/increasing the amounts by ₹ 7,17,500. Similarly it was submitted that there were no appropriate .....

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561. 21. While elaborating in the remand report, AO observed that the gross receipts from the business of tent house, shown at increased amount of ₹ 10,88,650 in the revised computation, as against ₹ 3,71,150 shown in the original return of income. Regarding the rental receipts, it was further observed that though there was no change in rental amounts of ₹ 4.00 lakhs as per 26AS, as against ₹ 4.00 lakhs shown in return of income, it was observed that no such receipts were .....

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observed to be not reflected in return of income furnished. It was further pointed out that records were furnished for agricultural lands of 4.14 acres at Duppalli Village, where as per balance sheet, 3.33 acres were shown at Kalvancha village for explaining agricultural income of ₹ 1.50 lakhs. In the rejoinder to the remand reports, assessee submitted that during the year an amount of ₹ 3,71,550 was earned as commission in real estate business in which the receipts were both in cas .....

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a Bank Account vis- à-vis the total explainable sources of ₹ 16,39,548 into ICICI Bank and ₹ 2,46,208 into Vijaya Bank subject to further verification. Further, the difference in business receipts as per the return of income and revised computation which is to the extent of ₹ 7,17,500 represent the unexplained income/ investment, as the appellant failed to explain the sources for such amounts. Thus, the additions stand confirmed at ₹ 26,66,228 in addition to the am .....

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al is treated as partly allowed as far as the credits into the ICICI Bank account is concerned. However, by considering the credits into Vijaya Bank, which emerged in the course of Appellate/Remand proceedings, the total additions confirmed for the year under reference stand enhanced . 23. Aggrieved, assessee has filed appeal before us. The ld Counsel for the assessee submitted that the AO had considered the deposits only in ICICI Bank account and not Vijaya Bank account. It was further pointed .....

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eceipts as per the return of income and revised computation which works out to ₹ 7,17,500 and that the said amount is to be assessed as income for the year under consideration. Further, the ld CIT (A) erred in confirming the addition of ₹ 14,51,892 being the deposits made into the Vijaya Bank on the ground that the deposits to the said extent are not properly explained. The CIT (A) ought to have considered the explanation submitted and ought not to have confirmed any part of the addi .....

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