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TMI Blog2021 (7) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... /148 dated 27.12.2016 also kindly be quashed. 2. The ld. CIT(A) erred in law as well as on the facts of the case in partly sustaining the impugned addition upto Rs. 10,72,934/-by applying estimated not profit at the rate of 0.20% on the turnover of Rs. 53,64,67,051/-. The addition so partly confirmed by the ld. CIT(A) being contrary to the provisions of law and facts kindly be deleted in full. 3. The ld. AO further erred in law as well as on the facts of the case in charging interest u/s 234A & 234B of the Act. The appellant totally denies its liability of charging of any such interest. The interest so charged, being contrary to the provisions of law and facts, kindly be deleted in full." 3. At the outset, it is noted that the ld Authorised representative has withdrawn his Power Attorney as apparent from the record and in particular, order sheet entry dated 08.10.2020. Thereafter, the Registry was directed to serve the notice to the assessee through the office of ld. DR. The ld. DR vide e-mail communication dated 12.04.2021 has confirmed the service of notice on the assessee on 9.04.2021. It is noted that in spite of service of the notice to the assessee, neither the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er that notice u/s 148 was issued in this case on 31.03.2016, on the basis of the information received from ADIT(Invsg.), Unit- 7(4), Mumbai on 30.03.2016 in respect of deposits and withdrawal made at Rs. 10,96,58,828/- in the account number 233010200020916, 233010100364478 and 575010200003902 with Axis Bank. As the notices issued by the AO during the course of assessment proceedings could not be served on the appellant, therefore, no compliance of the notices issued by the AO was made by the appellant. Therefore, the AO completed the assessment u/s 144 by treating entire credit entries/ deposits of Rs. 61,13,51,505/- appearing in the bank accounts maintained by the appellant, as undisclosed turnover of the appellant and estimated the net profit @8% on such undisclosed turnover of Rs. 61,13,51,505/-. Accordingly, the total income was assessed at Rs. 4,89,08,120/- as income from undisclosed sources. During the course of appellate proceedings, the appellant furnished complete details of business transactions carried on by him during the previous year relevant to A.Y. 2009-10 which was forwarded to the AO on 03.01.2019. The AO submitted the remand report dated 14.02.2019 which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax limit but due to lack of technical knowledge he did not filed his ITR for the relevant period A copy of the statements of the assessee is end herewith for your kind perusal. Brief facts of the case:- In this case information was received from the Asstt. Director of Income- CN1 tax(Inv.), Unit-7(4), Mumbai that assessee had made huge deposit of Rs. 10,96,57,828/- in his bank account No. 233010200020916 maintained with Axis Bank Marine Lies, Mumbai during the F.Y. 2008-09 relevant to the A.Y. 2009-10. In addition to this bank account, the assessee is also reported to have maintained two more bank accounts having a/c Nos. 233010100364489 & 575010200003902 with Axix Bank, Marine Lines, Mumbai in the name of M/s Shubh Trading Company. However, on verification of the assessees records, it is observed that he has not filed any return of income for the A.Y. 2009-10. Therefore the high value deposits of Rs. 10,96,57,828/- made by the assessee remained unverified. Accordingly, after obtaining the prior approval by the competent authority notice u/s 148 of the I.T. Act, 1961 was issued on 31.032016. which was non -compliance by the assessee. Again time to time notice u/s 142(1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the basis of material available on records. On the basis of material available with the records it is revealed that the assessee was doing the business of C.) goods as licensee as evident from the hank statements as well as license agreement CN available on records. In view of the above facts that the assessee did not utilize the numerous opportunities given by the AO, the then AO was justified in assessing the income @ 8% of the total credit entries/deposits of Rs. 61. 13,51.505/- which comes to Rs. 4,89,08, 120/- as income from undisclosed sources though it nosy appears that the assessee was a only involved in providing accommodation entries on commission basis. In view of the above facts as submitted above, which have also been discussed in the body of the assessment order. it is worthwhile to mention here that the additions were made after providing proper opportunity of being heard. It is humbly submitted that in my view the submission filed by the ld. Counsel of the appellant before your honours are not acceptable on any point as submitted above." It can be seen from the remand report dated 27.02.2019 that during the course of remand proceedings, the appellant along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he net profit computed @0.20% on the turnover of Rs. 53,64,67,051/- would be Rs. 10,72,934/-. Accordingly, out of total addition of Rs. 4,89,08,120/-, addition of Rs. 10,72,934/- is confirmed and remaining addition of Rs. 4,78,35,186/- (Rs. 4,89,08,120 - Rs. 10,72,934) is hereby deleted. As there were huge deposits/ credit entries in the bank account maintained by the appellant and no return of income was filed by the appellant, therefore, I am of the considered view that the AO had sufficient material with him to form the belief that income pertaining to A.Y. 2009-10 had escaped assessment. Accordingly, the reopening of assessment u/s 147 and issue of notice u/s 148 are held to be valid and in accordance with the provisions of law. Further, it is seen from the assessment order that the AO had tried his best to serve the statutory notices on the addresses available with him. As no compliance of the notices issued by the AO were made by the appellant, therefore, the AO was compelled to complete the assessment u/s 144. Hence, the completion of assessment u/s 144 is also held to be valid and in accordance with the provisions of law." 6. We note that the ld CIT(A), after admitt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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