BHAGYASHREE MANOHAR SAWANT,MUMBAI vs. ITO, WARD - 26(1)(2), MUMBAI

The assessee has filed an appeal against the order of the Commissioner of Income-tax (Appeals)-National Faceless Appeal Centre, Delhi [“Ld. CIT(A)”] passed under section 250 of the Income Tax Act, 1961 (“the Act”) for the Assessment Year (“AY”) 2011-12. The assessee has raised following grounds of appeal:- 1. “Additions of Rs.25,48,198/- confirmed without giving opportunity of being heard is bad-in-law and must be deleted.

Addition of Rs.25,48,198/- u/s.68 being bad-in-law must be deleted.

Addition of Rs. 25,48,198/- without considering the expenditure incurred in connection with the same under the head "Profits and gains from business and Profession" must be deleted. 4. Addition of Rs. 25,48,198/- without considering the expenditure incurred in connection with the same under the head "Income from Other Sources" must be deleted.” 2. The brief facts of the case are that, the assessee has not filed the return of income for AY 2011-12. The assesse was engaged in mountaineering summit and received sponsorship contributions from various organizations, friends and relatives in F.Y 2010-11. The Assessing Officer (“AO”) has received information from the bank that the assessee during the Financial Year 2010-11 has made cash deposits aggregating to Rs.19,55,700/- in the saving bank account maintained with State Bank of India and the contract receipts of Rs.3,00,000/-. The AO has reason to believe that the income has escaped the assessment and issued notice u/s 148 of the Act. In compliance to notice, the assessee has filed the return of income for AY 2011-12 on 13.12.2018 disclosing a total income of Rs.2,960/-. Subsequently, notice u/s 143(2) and U/sec 142(1) of the Act was issued calling of the information. In compliance to the notice, Ld. Authorized Representative of the assessee (“AR”) appeared and submitted the details. The AO found that in 3 Bhagyashree Manohar Sawant the said FY, the assessee has disclosed the income under “income from other sources” and the assessee has not produced the evidences in respect of sources of cash deposits in the bank account to the extent of Rs.19,55,700/-. Whereas, it was explained that the assessee was engaged in mountaineering summit and has received sponsorship contributions from various organizations, friends and relatives. The AO found that the asssessee has filed the submissions on 21.12.2018, mentioning that the contributions are received from friends and relatives but has not provided any confirmation letter, sponsorship letter to substantiate the cash deposits and the contributions received. Therefore, the AO was not satisfied with the explanations and made addition of(i) Rs.19,55,700/- of cash deposits (ii) Rs.5,16,498/- in respect of contribution received from close friends and relatives are not supported by the confirmations (iii) Rs. 76,000/- which was received from Municipal Corporation was not supported with sponsorship confirmation or letter. The A.O has finally assessed the total income of Rs.25,51,158/- and passed order u/s 143(3) r.w.s 147 of the Act dated 28.12.2018. 3. Aggrieved by the order of AO, the assessee has filed appeal before the Ld.CIT(A) whereas Ld.CIT(A) has considered the grounds of appeal