SWAPNIL KISAN KARANDE,AURANGABAD vs. INCOME-TAX OFFICER, WARD - 2(3), AURANGABAD

आदेश / ORDER

PER PARTHA SARATHI CHAUDHURY, JM :

This appeal preferred by the assessee emanates from the order of Ld. CIT(Appeals)-2, Aurangabad dated 01.08.2017 for the assessment year 2008- 09 as per grounds of appeal on record.

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wants to argue the legal ground first i.e. whether the reasons recorded for re-

opening of assessment by the Assessing Officer forms ‘reason to believe’ that

income has escaped assessment as mandated within the provisions of section

147/148 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

paper book before us which is extracted as under:-

Name and address of the assessee Shri Karande Swapnil Kisan N-9, K-56-5, Pawan Nagar, CIDCO, Aurangabad A.Y. 2008-09

PAN ARXPK6056E

REASONS FOR ESCAPEMENT OF INCOME U/S.147 OF THE ACT.

“As per the AIR/CIB information received, the above assessee has deposited the Cash amount of Rs.16,04,400/- in his saving bank account during the F.Y.2007-08. Letter of verification of financial transaction was issued on 26/12/2014 to verify the genuineness of the transaction but the assessee is not responded the same. As per para-3 of the said letter, the assessee was required to furnish the details of sources of the financial transaction along with copies of documents in support of his claim. On verification of AST data, it is seen that the assessee has not furnished his return of income for the A.Y.2008-09. The assessee has not offer the amount of Rs.16.04 lakh for taxation. In view of the above, I have thus reason to believe that the amount of Rs.16,04,400 has escaped assessment within the meaning of section 147 of the Act. Issue notice u/s.148 of the I.T. Act, 1961. Sd/- ( S.K. Bhagat) Income Tax Officer, Ward 2(3), Aurangabad.”

deposit of Rs.16,04,400/- in F.Y.2007-08 relevant to assessment year 2008-

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09, the letter of verification of financial transaction was issued on

26/12/2014 to verify the genuineness of the transaction but the assessee has

not responded to the same.

the assessee did not receive any notice or letter as such and therefore, was

not able to respond. Re-enquired whether the change of address was

communicated by the assessee to the Department, the Ld. AR submitted that

change of address was not communicated to the Department by the assessee.

Furthermore, coming back to the reasons recorded, the assessee was required

to furnish details of sources of the financial transaction along with copies of

documents in support of his claim. This was also not done by the assessee.

Further, in the reasons recorded, it is stated on verification of AST data, that

the assessee has not furnished his return of income for the assessment year

2008-09. The assessee has not offered the amount of Rs.16.04 Lakh for

taxation. In view of above, the Assessing Officer has reason to believe the

amount of Rs.16,04,400/- escaped the assessment within the meaning of

section 147 of the Act. Therefore, there are number of reasons in this case

because of which, the Assessing Officer reopened the assessment which are

as follows:

i) Letter of verification issued on 26/12/2014 to verify the genuineness of transaction was not responded to by the assessee.

ii) The assessee was required to furnish the details of sources of the financial transaction along with copies of documents in support of his claim. iii) As per AST data, the assessee has not furnished his return of income for the A.Y.2008-09. The assessee has not offered the amount of Rs.16.04 lakh for taxation.

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These are sufficient reasons for forming ‘reason to believe’ that income

has escaped assessment for reopening of the assessment and therefore, the

assessee fails in this legal ground.

reopening of the assessment in this case. Therefore, legal ground of the

assessee is dismissed.

contends that the entire receipts/cash deposits are considered as income,

without considering the income/profit embedded in the receipts/cash

deposits. The fact that the assessee has carried two businesses in that year

has not been considered by the Ld. CIT(Appeals). The Ld. CIT(Appeals)/Ld.

AO has not brought any material on record to justify that the above receipts

are net income of the assessee. That for verification of this aspect, it was

prayed by the Ld. AR of the assessee that the matter may be restored to the

file of the Ld. CIT(Appeals).

that the grounds on merits needs to be adjudicated after detailed factual

verification through a speaking order by the Ld. CIT(Appeals).

In view of the matter, we set aside the order of the Ld. CIT(Appeals) and

the grounds on merits are remanded to the file of the First Appellate

Authority for adjudication in compliance with the principles of natural justice.

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Order pronounced on 07th day of February, 2019.

Sd/- Sd/- D. KARUNAKARA RAO PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER

पुणे / Pune; �दनांक / Dated : 07th February, 2019. SB आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to :

अपीलाथ� / The Appellant. 1. ��यथ� / The Respondent. 2. 3. The CIT(Appeals)-2, Aurangabad. 4. The Pr. CIT-2, Aurangabad. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, “एक-सद�य” ब�च, 5. पुणे / DR, ITAT, “SMC” Bench, Pune. गाड� फ़ाइल / Guard File. 6.

// True Copy // आदेशानुसार / BY ORDER,

�नजी स�चव / Private Secretary आयकर अपील�य अ�धकरण, पुणे / ITAT, Pune.

6 ITA No. 2631/PUN/2017 A.Y.2008-09

Date 1 Draft dictated on 06.02.2019 Sr.PS/PS 2 Draft placed before author 06.02.2019 Sr.PS/PS 3 Draft proposed and placed JM/AM before the second Member 4 Draft discussed/approved by AM/JM second Member 5 Approved draft comes to the Sr.PS/PS Sr. PS/PS 6 Kept for pronouncement on Sr.PS/PS 7 Date of uploading of order Sr.PS/PS 8 File sent to Bench Clerk Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order