NARAYANAPPA VENKATESH,BENGALURU vs. INCOME TAX OFFICER, WARD-7(2)(5), BENGALURU

This appeal filed by the assessee against the ex-parte Order passed by the learned CIT(A) as well as AO under section 144 of the Act.

Briefly stated, the facts of the case are that assessee filed return of income on 01.04.2018 declaring total income of Rs.6,25,000/-. The case was selected for scrutiny and statutory notices were issued to the assessee. But there was no response from the assessee’s side. Further, opportunities were also granted. The AO, before completing the assessment under section 144 of the Act, gave opportunity and final show cause notice was issued to the assessee on 14.12.2019. In spite of that there was no response. From the records available, the AO noted Page 2 of 4 that the assessee has deposited cash of Rs.4,50,28,652/- during the year under consideration out of Rs.49,29,000/- during the demonetization period. Though opportunities were granted to the assessee, there was no response from the assessee’s side. Therefore, for want of proper explanation from the assessee’s side, the AO treated the cash deposited into the bank account during demonetization period as income under section 69A of the Act. Further, the AO noted that there is cash deposits in 3 bank accounts of Rs.4,50,28,652/- out of which Rs.49,20,000/- was reduced because it was deposited during demonetization period and it has been separately considered as income under section 69A of the Act. Therefore, on the balance amount of Rs.4,01,08,652/- the AO calculated 8% income (Rs.4,50,28,652 – Rs.49,20,000) as business income which comes to Rs.32,08,692.16/- since the assesse has already declared business income of Rs.2,56,165/-. Accordingly, he assessed the total income at Rs.84,98,130/- and passed Order under section 144 of the Act.

Aggrieved from the above Order, assessee filed appeal before the learned CIT(A) on 20.01.2020. During the appellate proceedings, the learned CIT(A) issued various notices on different dates. Assessee sought adjournments for collecting requisite details and he sought time upto 05.12.2024 but there was no response upto the date of passing of Order. Accordingly, he decided the issue on the basis of documents available with him and dismissed the appeal of the assessee. The learned Counsel reiterated the grounds of appeal and submitted that because of change of Counsels, the assessee could not represent on the scheduled date and requested and undertook that if a chance is given to the assessee, assessee shall comply with the notices for substantiating his case.