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2019 (8) TMI 507

..... he AO to treat the deposits made by the assessee with the Corporation Bank, Tanuku as unexplained investments u/sec.69 of the Act. AO issued a notice to the assessee. The assessee neither appeared before the Assessing Officer nor filed any written submissions. AO by following the directions of the ld. CIT, assessment was completed u/sec. 143(3) r.w.s. 263 of the Act, dated 25/03/2015. We find that the assessee has not challenged the order passed by the ld. CIT, therefore order passed by him is attained finality. It is the duty of the Assessing Officer to pass the assessment order as directed by the ld. CIT u/sec. 263. Accordingly, the Assessing Officer has completed the assessment, the same is confirmed by the ld. CIT(A). We find no reason to interfere with the order passed by the ld. CIT(A). Thus, this appeal filed by the assessee is dismissed. - ITA No. 144/VIZ/2018 - 7-8-2019 - Shri V. Durga Rao, Hon ble Judicial Member And Shri D.S. Sunder Singh, Hon ble Accountant Member For the Assessee : Shri G.V.N. Hari - Advocate. For the Department : Smt. Suman Malik - Sr.DR ORDER PER V. DURGA RAO, JUDICIAL MEMBER This appeal by the assessee is directed against the order of Commissioner o .....

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..... , it is noted here that the said order u/s.263 passed by the CIT(Rajahmundry) has not been challenged by the assessee before the appropriate judicial authorities, and therefore, challenging the said order now before the undersigned, does not serve any purpose. Secondly, it is the contention of the assessee's AR that proper opportunity was not afforded to the assessee during the revision proceedings as well as during the reassessment proceedings. This contention is also found to be baseless and incorrect. In reassessment order i.e., Order u/s.263 r.w.s. 143(3) which is the subject matter of the appeal here, the Assessing Officer has clearly stated that "in spite of the opportunity afforded to the assessee he could not substantiate his claim or prove otherwise". In fact, on perusal of the order u/s.263 passed by the CIT(Rajahmundry), it is seen that not only has repeated opportunity been given to the assessee to explain the matter, which the assessee has chosen not to avail, but also that the issue regarding deposits in the said bank account has also been thoroughly examined and investigated by the CIT (Rajahmundry), while passing the said order u/s.263. The relevant po .....

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..... by Andhra Sugars Limited. It is further seen that the payments made to Andhra Sugars Limited during the April, May, June are appearing in the statement of bank account of Corporation Bank, Tanuku. Therefore, it is clear that there is one more bank account through which these cheques were Issued to Andhra Sugars Limited. Therefore, the assessee was asked to furnish the sources for cash deposits and payments made to Andhra Sugars Limited. It is further seen that some amounts have gone through the account maintained with Andhra Bank, Tanuku, Account No.00C/01/00001652. This account is in the name of the assessee and disclosed in the balance-sheet. Therefore, it is clear that the assessee has done transactions through bank accounts with 0CC account of Andhra Bank, Tanuku and Corporation Bank, Tanuku whereas Andhra Bank account is admitted in the books of account and the Corporation Bank Is not appearing. It is claimed in the notes to the account that the assessee is running a rice business and the turnover admitted is ₹ 48,47,422/- in respect of 4% VAT goods and ₹ 17,54,027 in respect of exempted goods. Therefore, it is clear that the transactions are not disclosed In the .....

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..... made by the Assessing Officer, and is confirmed. All the grounds related to this issue are therefore DISMISSED. 4. On being aggrieved, assessee carried the matter in appeal before this Tribunal. 5. Ld. counsel for the assessee has submitted that the entire addition made by the Assessing Officer on account of deposits made in the Corporation Bank, Tanuku is not justified and submitted that the addition may be deleted. 6. On the other hand, ld.DR strongly supported the order passed by the Assessing Officer. 7. In this case, the Assessing Officer completed the assessment u/sec. 143(3) of the Act. Subsequently, ld. CIT by exercising powers conferred on him u/sec. 263, called the records and opined that the Assessing Officer has not properly examined the deposits made in the Corporation Bank which is not disclosed in the return of income. Therefore, ld. CIT opined that the order passed by the Assessing Officer is erroneous and prejudicial to the interest of the Revenue. The relevant portion of the order of the ld. CIT is extracted as under:- Though the assessee asked for adjournment vide letter dated 23-092013, the assessee never responded to the subsequent notice issued. Even to the le .....

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..... n the books of account and it is for the assessee to prove the source for cash deposits in the bank account maintained with Corporation Bank, Tanuku. It is further seen that the total purchases admitted by the assessee from Andhra Sugars Limited is ₹ 18,65,105/- out of total purchases of ₹ 74,46,841/-, ₹ 47,94,145/- 4% at goods on ₹ 24,60,969/- (exempted goods). However, the assessing officer erroneously treated the deposits as representing turnover of the assessee and estimated income @5% which is prejudicial to the interests of the Revenue. These purchases include purchases from Andhra Sugars Limited during the year. Therefore, the assessing officer is directed to treat the entire amount of deposits appearing in the bank account with Corporation Bank, Tanuku as unexplained investment u/s.69 of the I.T. Act, after giving an opportunity of being heard to the assessee. 8. From the above, it is very clear that the ld. CIT directed the Assessing Officer to treat the deposits made by the assessee with the Corporation Bank, Tanuku as unexplained investments u/sec.69 of the Act. Accordingly, the Assessing Officer issued a notice to the assessee. The assessee neith .....

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