JYOSHNAMAYEE MISHRA,KHORDHA vs. ITO, KHORDHA WARD, KHORDHA

The effective ground taken in all these appeals is that the order The effective ground taken in all these appeals is that the order The effective ground taken in all these appeals is that the order under section 14 under section 143(3)/147 of the Act is erroneous and unjustified /147 of the Act is erroneous and unjustified as the orders have been passed against the orders have been passed against the principles of natural justice. principles of natural justice.

At the time of hearing, ld counsel for the assessee submitted that the At the time of hearing, ld counsel for the assessee submitted that the At the time of hearing, ld counsel for the assessee submitted that the assessment in all these years have been completed under section assessment in all these years have been completed under section assessment in all these years have been completed under section P a g e 1 | 3 to 318/CTK/2019 Assessment Years: 2012-13, 2013-14 & 2014-15 143(3)/147 of the Act, which is against the principles of natural justice. Ld counsel submitted that since the assessee has not maintained books of account, therefore, cash deposited into the bank account do not represent the credit found in the books of account of the assessee and, therefore, no addition could be made under section 68 of the Act. He submitted that the deposits in the bank account cannot be the sole basis for reopening the assessment under section 147 of the Act, for holding that income has escaped assessment. Ld counsel further submitted that the addition cannot be made in the facts and circumstances of the case. He submitted that, if at all any addition is required to be made, then the peak amount can be added to the income of the assessee.

Replying to above, ld DR submitted that when the assessee has not disclosed the accounts of the assessee then the entire income has to be taxed in the hands of the assessee. However, in all fairness, ld D.R. submitted that the case may be restored to the file of the AO for allowing the assessee to explain the source of cash credit and determination of peak credit to be added to the income of the assessee.

On careful consideration of rival submissions, first of all, I may point out that the assessment in all these years have been completed under section 143(3)/147 of the Act. The contention of ld A.R. before the Tribunal that if at all any addition is required to be made that would be the peak credit. On perusal of the assessment order, I observe that no such exercise P a g e 2 | 3 to 318/CTK/2019 Assessment Years: 2012-13, 2013-14 & 2014-15 has been conducted by the Assessing Officer regarding computation of peak credit. We find that this issue, in any case, is to be remanded back to the file of Assessing Officer to determine the peak credit claimed by the assessee and the assessee is directed to give peak computation of these transactions. In case, assessee will not provide information on peak credits the AO will verify and frame assessment accordingly and recalculated the taxable income of the assessee accordingly.

In the result, appeals of the assessee are allowed for statistical purposes.