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Shri Jitendra Bandu Bhosale Versus The Income Tax Officer, Ward 1 (1) , Kolhapur

2016 (6) TMI 325 - ITAT PUNE

Addition under section 69 of the Act on account of deposits in the bank accounts - Held that:- The assessee has failed to appear before us though several opportunities have been given. In the absence of any explanation filed by the assessee and in the absence of assessee having produced the books of account to substantiate his claim, we find no merit in the stand of assessee in this regard. The onus was upon the assessee to produce his witnesses and establish the sources of amount in two savings .....

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asked to substantiate her claim, she failed to do so. The said witness is that of assessee and the onus was upon the assessee to prove the veracity of statement by her. The report which was submitted by the Inspector of Income Tax Department was vis-à-vis fact of collection of samples near Tawade Hotel, where the employee said that it was a collection centre of M/s. Vedant Path lab. In view of the assessee having not discharged his onus, we find no merit in the claim of assessee and addition of .....

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aimed that it was purchased by his father and was part of HUF. However, the assessee failed to produce and fi le the source of said investment and merely stating that it belongs to the HUF does not absolve the assessee of his duty, where the asset stands in his name. In the absence of assessee having discharged his duty, we find no merit in the claim of assessee and the same is rejected. - Decided against assessee

Adhoc disallowance of expenditure - Held that:- Assessing Officer noted .....

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of same, we find no merit in the ground of appeal raised by assessee. - ITA No. 586/PN/2014 - Dated:- 31-5-2016 - Ms. Sushma Chowla, JM And Shri Pradip Kumar Kedia, AM For the Appellant : None For the Respondent : Shri Anil Chaware ORDER Per Sushma Chowla, JM This appeal filed by the assessee is against the order of CIT(A), Kolhapur, dated 04.02.2014 relating to assessment year 2010-11 against order passed under section 143(3) of the Income-tax Act, 1961 (in short the Act ). 2. The appeal of th .....

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ned to 31.05.2016 and notice was sent through RPAD. The said notice has been returned with the remark not known, returned to sender by the Postal Department. On appointed date of hearing i.e. 31.05.2016, none appeared on behalf of the assessee nor any application was moved for adjournment. Accordingly, we proceed to decide the present appeal after hearing the learned Departmental Representative for the Revenue. 3. The assessee has raised several grounds of appeal, which read as under:- 1) On the .....

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ssions made before him. The order of the Ld. CIT(A) being not in consonance with the provisions of S. 250(6) of the Act the addition sustained be quashed. 3) On the facts and circumstances of the case and in law the Ld.CIT(A) was not justified in sustaining the addition of ₹ 5,93,610/- without considering properly the submissions made before him. The order of the Ld. CIT(A) being not in consonance with the provisions of S. 250(6) of the Act the addition sustained be quashed. 4) On the fact .....

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. Without that the sustenance of additions made by the A.O. are illegal and without jurisdiction. The appeal order of the Ld. CIT(A) be set aside. 6) On the facts and circumstances of the case and in law the levy of interest u/s 234A, 234B and 234C, 234D is not justified. The levy of interest be quashed. 4. The issue in ground of appeal No.1 is against the addition of ₹ 20,44,172/- under section 69 of the Act on account of deposits in the bank accounts. 5. Briefly, in the facts of the case .....

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produce the same. During the course of assessment proceedings at the time of hearing held on 15.03.2013, the learned Authorized Representative for the assessee had expressed his inability to produce the books of account, bills, vouchers, etc. for verification and also to furnish any further submissions. In the absence of books of account, bills, vouchers and all relevant record, the Assessing Officer observed that Trading Account, Balance Sheet prepared by the assessee was not fully reliable. T .....

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ank of Maharashtra, A/c No.20159129106 Rs.10,38,000/- SBI, Treasury Branch A/c No .95176 Rs.4,00,000/- Total Rs.36,30,740/- 6. The Assessing Officer further noted that the bank accounts maintained with HDFC Bank bearing account No.5810 and bearing account No.577 were not shown in the Balance Sheet. The assessee was asked to furnish the copies of all bank accounts together with source of deposits and details of withdrawals on and above ₹ 20,000/-. In response, the assessee stated that he di .....

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further issued letter dated 14.12.2013 under section 142(1) of the Act, wherein he asked the assessee to furnish evidence of sale of machinery. In reply, the assessee submitted that the total amount of ₹ 45,29,370/- was used to deposit in various accounts. This amount included ₹ 13 lakhs stated to have been received from assessee s father, ₹ 6,19,905/- from the business of his spouse Smt. S.J. Bhosale and ₹ 1,19,512/- as cash from machinery sale. The Assessing Officer as .....

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nature of machinery. The assessee only stated that it had received ₹ 1,35,000/- by cheque from one Shri Ashok Maruti Patil. The Assessing Officer verified this fact and found that the cheque was issued by Shri Nagesh Mahdik for purchase of property situated at Nerul, New Mumbai. The statement of wife of the assessee was recorded, who stated that she was running a sample collection centre near Tawade Hotel . She was asked to produce books of account, licence, etc., which she promised to pr .....

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f ₹ 21,26,635/-, the addition was made on account of unexplained credit under section 69 of the Act. 7. Before the CIT(A), same explanation as produced before the Assessing Officer was made and he also contended that the Assessing Officer should have summoned his father being a third party to the assessment proceedings. The CIT(A) observed that it has not been denied by the assessee that he failed to produce the books of account, bills and vouchers. However, the assessment having been comp .....

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ing Officer had allowed several opportunities to the assessee, the CIT(A) held that proper natural justice was done and the addition was upheld. 8. As pointed out by us in the paras hereinabove, the assessee has failed to appear before us though several opportunities have been given. In the absence of any explanation filed by the assessee and in the absence of assessee having produced the books of account to substantiate his claim, we find no merit in the stand of assessee in this regard. The on .....

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urce of deposit in the bank account had stated that ₹ 6,19,905/- was out of business of his spouse Smt. S.J. Bhosale. In her statement, she stated that she was running a sample collection centre near Tawade Hotel. She was asked to produce the books of account and licence, which she never produced. The Assessing Officer thereafter, made certain enquiries through Inspector, who reported that Shri Mahesh Patil, employee at the premises situated near Tawade Hotel stated tha t the premises was .....

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the fact that the assessee had failed to produce the books of account and proof regarding expenditure incurred, 40% of the said expenses were disallowed, which worked out to ₹ 1,00,566/- and sum of ₹ 4,15,411/- was added to the total income of assessee. 10. In appeal before the CIT(A), the plea of assessee was that the report of Inspector was not given to the assessee. The CIT(A) rejected the claim of assessee, where no books of account and licence were produced before the Assessing .....

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take note of the claim of assessee that his wife was running a sample collection centre at Tawade Hotel . Undoubtedly, the wife of assessee appeared during the course of assessment proceedings and confirmed that she was running the said business, but when she was asked to substantiate her claim, she failed to do so. The said witness is that of assessee and the onus was upon the assessee to prove the veracity of statement by her. The report which was submitted by the Inspector of Income Tax Depa .....

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strict Belgum for total consideration of ₹ 5,55,000/- and including the other expenses, the total investment was ₹ 5,93,610/-. The said land was not reflected in the Balance Sheet. The assessee was asked to explain the same. The assessee stated that the land was purchased by his father, but in his name. The said land was claimed to be purchased out of HUF funds and was HUF property. However, the assessee failed to furnish any evidence in support thereof and the assessee was asked to .....

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e CIT(A) noted that on going through the submissions of assessee, there was no evidence that the assessee s father had income and that the agricultural land was acquired by him and it was part of HUF. Since these facts were furnished by the assessee, the onus was upon the assessee to produce his father for verification and where he has failed to do so, the addition made by the Assessing Officer was upheld by the CIT(A). 14. The assessee is in appeal against the aforesaid observations of CIT(A). .....

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see claimed that it was purchased by his father and was part of HUF. However, the assessee failed to produce and fi le the source of said investment and merely stating that it belongs to the HUF does not absolve the assessee of his duty, where the asset stands in his name. In the absence of assessee having discharged his duty, we find no merit in the claim of assessee and the same is rejected. The ground of appeal No.3 raised by the assessee is thus, dismissed. 16. The last ground of appeal rais .....

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