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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM
Before: SHRI V. DURGA RAO, HON’BLE & SHRI D.S. SUNDER SINGH, HON’BLE
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON’BLE ACCOUNTANT MEMBER ITA No. 387/VIZ/2018 (Asst. Year : 2014-15) Anaparthi Venkateswara Rao, vs. ITO, Ward-3(2), D.No. 53-41-48/6, Flat Visakhapatnam. No.501, C-Block, M.V.V. Apartments, K.R.M. Colony, Sivalayam Street, Visakhapatnam. PAN No. ADLPA 3796 R (Appellant) (Respondent)
Assessee by : Shri G.V.N. Hari – Advocate. Department By : Smt. Suman Malik – Sr.DR
Date of hearing : 26/06/2019. Date of pronouncement : 03/07/2019. O R D E R PER V. DURGA RAO, JUDICIAL MEMBER
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-10, Hyderabad, dated 15/06/2018 for the Assessment Year 2014-15. 2. Facts of the case, in brief, are that the assessee is an individual engaged in the business of civil works, filed his return of income by admitting total income of Rs. 2,13,270/-. The return
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filed by the assessee was processed u/sec. 143(1) of the Income Tax Act, 1961 (hereinafter referred to as 'Act'). Subsequently, case of the assessee was selected for scrutiny under CASS and after following due procedure, assessment was completed u/sec. 143(3) of the Act, dated 15/09/2016. In the assessment order, the Assessing Officer has noted that the assessee had shown only one bank account in his return of income i.e. SBI, Waltair Branch, Visakhapatnam. However, on verification of the details through ITS, it came to light that the assessee is maintaining some other bank accounts. In this regard, Inspector of Income Tax was deputed to collect the bank accounts of the assessee’s/his family members. As per information gathered, it is noticed that the assessee has maintained the following bank accounts:- (i) SBI, Waltair A/c. No. 20007225032 (ii) SBI, Dabagardens A/c. No. 31113296046 (iii) Axis Bank, Seethammadhara A/c. No. 3690101001126380 (iv) Axis Bank, Seethammadhara A/c. No. 914010000877461
Out of the above accounts, assessee shown only one account as mentioned at serial No. (i). During the course of assessment proceedings, vide order-sheet entry dated 08/09/2016, the AR of the assessee was asked to explain the details of remaining bank accounts and also asked to furnish note on cash deposits made in all the bank accounts. The AR of the assessee was asked why the
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bank accounts in SBI, Dabagardens, Axis Bank, Seethammadhara were not disclosed either in the assessee’s books of account or in the return of income filed. The assessee has not submitted the details of the said bank accounts. After verification of all the bank accounts of cash deposits, total unexplained cash credits (peak credits) comes to Rs. 47,56,790/-. Subsequently, the assessee vide his letter dated 13/09/2016 requested the Assessing Officer to permit him to file the revised return by taking all the deposits in bank account as mentioned supra. The Assessing Officer by considering the assessee’s letter has observed that assessee cannot file a revised return at this stage as the time for submission of revised return provided in the statute has already been elapsed and accordingly, assessment is completed by taking into consideration of the cash credits (peak credits) to the extent of Rs. 2,09,500/- as explained and the remaining balance amount of Rs. 45,47,290/- as unexplained cash credit (peak credit) u/sec. 68 of the Act and the same is added to the income returned. 3. On appeal before the ld. CIT(A), by filing a letter assessee has submitted as under:- "1. The Income Tax Officer Ward 3(2), Visakhapatnam was not justified by adding of Rs.45,47,290/- to the income stating that as unexplained cash credits u/s 68 of the Income Tax Act, 1961 and raising tax demand of Rs. 18,27,060/- irrespective of income and expenditure and not accepting for revised return even though
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I am ready to submit the revised return by taking all bank transactions and pay tax. 2. 1 used to file income tax return by taking one bank account i.e. Chinawaltair branch, in addition to that- I have one account in Daba gardens SBI this was used for transactions of lodge taken for lease and 2 accounts in Axis bank in Seethammadhara branch one in my daughter Deepthi name a/c no. 91401000087461 and another one is in my name account no. is 369010100126380 as these accounts are used for private chit payments which is maintained by me for children education purpose. Chit fund members from outside used to deposit chit installment by cash and for chit bidders I used to send through R T G S. Because this chit business is unofficial therefore I did not show in the Return of Income. From this chit amount I got only 4% of commission, on this chit amount of Rs. 10.00 lakhs i.e. Rs. 40,000/- Per month only. In the above instance I have no intention of evading tax. Due to lack of knowledge and fear to show the private chit fund group maintenance in Return of Income. I am requesting you to give relief by considering the above facts."
The ld. CIT(A) has considered the above submissions and confirmed the order of the Assessing Officer by observing as under:- “8. On perusal of the assessment order and the submissions of the appellant, it is seen that there is no dispute on the basic fact of the failure, on the part of the appellant, to disclose all bank accounts in the return of income filed. The appellant filed the return of income after due verification and still deliberately concealed the transactions in books of account. After the AO detected the undisclosed bank accounts, the appellant states that he wishes to file a revised return and pay taxes in respect of the transactions reflected in the undisclosed bank accounts. The appellant cannot file a valid revised return of income as the conditions contained in Section 139(5), relating to filing of revised return, are not met. There was no discovery of any omission or any wrong statement by the appellant. It was the AO who detected the willful attempt to evade tax by not disclosing all the bank accounts. Further, the time available to furnish a revised return also lapsed.
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8.1 In the written submissions, the appellant himself is admitting that the transactions in the undisclosed bank accounts relate to chit business which is unofficial. The statement of the appellant that he only received 4% of the chit amount as commission is totally unsubstantiated. 8.2 In view of the above, the action of the AO making the said addition is upheld and this ground of appeal is dismissed.”
On being aggrieved, assessee carried the matter in appeal before this Tribunal. 6. Ld. counsel for the assessee has relied on the grounds of appeal, whereas ld. DR strongly supported the orders passed by the authorities below. 7. We have heard both the sides, perused the material available on record and orders of the authorities below. 8. The only issue involved in this appeal relates to the addition made by the Assessing Officer u/sec. 68 of the Act of Rs.45,47,290/-. In respect of the above addition, the assessee has not properly explained neither before the Assessing Officer nor before the ld. CIT(A). Even before us, no explanation is made. In the absence of explanation, the Assessing Officer after taking into consideration of all the bank accounts made a peak addition of Rs.45,47,290/-. The ld. CIT(A) also, after considering the facts and circumstances of the case, confirmed the order of the Assessing Officer. Therefore, we find no infirmity in the order
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passed by the ld. CIT(A). Thus, this appeal filed by the assessee is dismissed. 9. In the result, appeal filed by the assessee is dismissed. Order Pronounced in open Court on this 03rd day of July, 2019.
Sd/- sd/- (D.S. SUNDER SINGH) (V. DURGA RAO) Accountant Member Judicial Member Dated: 03rd July, 2019. vr/- Copy to: 1. The Assessee – Anaparthi Venkateswara Rao, D.No. 53- 41-48/6, Flat No.501, C-Block, M.V.V. Apartments, K.R.M. Colony, Sivalayam Street, Visakhapatnam. 2. The Revenue – ITO, Ward-3(2), Visakhapatnam. 3. The Pr.CIT-1, Visakhapatnam. 4. The CIT(A)-10, Hyderabad. 5. The D.R., Visakhapatnam. 6. Guard file. By order
(VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Visakhapatnam.