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Income Tax Appellate Tribunal, “SMC” BENCH,
Before: SHRI ABY T. VARKEY, JM
PER ABY T. VARKEY, JM: These are appeals preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi dated 26.08.2022 for the assessment year 2011-12 against the quantum addition made as well as against the penalty levied u/s 271F of the Income Tax Act, 1961 (hereinafter “the Act”) (for non-filing of return of income for AY. 2011-12).
Brief facts of the case as noted by the AO (in the quantum assessment order) was that he received information from NMS (Non- Filers Monitoring System) that assessee company has deposited cash aggregating to Rs.14,00,000/- with Oriental Bank of Commerce from A.Y. 2011-12 Capco Finance & Investment Pvt. Ltd. source which was un-known. As per the AO, the assessee being corporate entity is under obligation to furnish u/s 139(1) of the Act. According to the AO, from the department’s system it is observed that the assessee company did not file its return of income for AY 2011-12 either u/s 139(1) or u/s 139(4) or u/s 139(5) of the Act. Therefore, after recording reasons for reopening u/s 147 of the Act, the AO issued notice u/s 148 of the Act on 27.03.2018. Pursuant to the same, the assessee filed return of income declaring loss of Rs.2,18,827/-. The AO noted that the assessee company deals in listed and unlisted securities and in the relevant assessment year, the assessee has credited to the P & L account receipts aggregating to Rs.10,183/- on account of income from Capital market and after debiting administrative expense of Rs.1,34,244/- and finance charges of Rs.94.766/- has shown a net loss of Rs.2,18,827/-. And thereafter, the AO further noted that the assessee had deposited cash aggregating to Rs.14,00,000/- in the bank account of the company maintained with Oriental Bank of Commerce, Powai, bearing account no.06321010004060/-; and the AO directed the assessee to furnish the copy of the bank statement. And thereafter, the AO notes on which date the cash was deposited i.e. on 26.11.2010, 27.11.2010 & 18.12.2010 and according to the AO, the deposits are on account of professional fees received by the company, which has not been offered to tax. Therefore, in the absence of any explanation regarding the deposit of Rs.14,00,000/- appearing in the bank statement of the assessee, the same was treated as deemed income u/s 69A of the Act. Aggrieved, the assessee preferred an appeal before the A.Y. 2011-12 Capco Finance & Investment Pvt. Ltd. Ld. CIT(A) which was dismissed. Aggrieved, the assessee preferred this appeal before this Tribunal raising the legal issue that the assessee’s (private limited company) has been struck off from the Register of