SANDHI RAJA SEKHAR ,BHIMAVARAM vs. INCOME TAX OFFICER, WARD-1, BHIMAVARAM

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ITA 296/VIZ/2024Status: DisposedITAT Visakhapatnam07 March 2025AY 2013-14Bench: SHRI K NARASIMHA CHARY, HON'BLE (Judicial Member), SHRI S BALAKRISHNAN, HONBLE (Accountant Member)8 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that Section 68 of the Income Tax Act applies only when sums are found credited in the 'books of account maintained by the assessee'. Since the Assessing Officer himself acknowledged that the assessee did not maintain books of account, the addition made under Section 68 was legally unsustainable and deserved to be deleted.

What were the facts?

The assessee, engaged in prawn and fish business, did not file an income tax return for AY 2013-14. During re-assessment proceedings initiated under Section 147, significant cash deposits were found in the assessee's bank account. The Assessing Officer added Rs. 53,50,000/- as unexplained cash credits under Section 68, which was upheld by the Ld. CIT(A) despite the assessee claiming not to maintain books of account.

What were the issues?

Whether an addition under Section 68 for unexplained cash credits can be made when the assessee admittedly does not maintain any books of account.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 142(1),Section 131,Section 68

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Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRIK NARASIMHA CHARY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE

For Respondent: Dr. Aparna Villuri, Sr. AR
Hearing: 10/02/2025Pronounced: 07/03/2025

आदेशकीप्रनतनलनपअग्रेनर्त/Copy of the order forwarded to:- ननधधाऩरती/ The Assessee– Sandhi Raja Sekhar, D.No. 1-42, Vijaya 1. Nivas, China Amiram Post, Bhimavaram, Andhra Pradesh – 534204. रधजस्व/The Revenue – Income Tax Officer, Ward-1, O/o. ITO, JP 2. Road, Siva Rao Pet, Bhimavaram, Andhra Pradesh-534201. 3. The Principal Commissioner of Income Tax, आयकरआयुक्त (अपील)/ The Commissioner of Income Tax 4. नवभधगीयप्रनतनननध, आयकरअपीलीयअनधकरण, नवशधखधपटणम/ DR,ITAT, 5. Visakhapatnam गधर्ाफ़धईल / Guard file 6.

आदेशधनुसधर / BY ORDER

Sr. Private Secretary ITAT, Visakhapatnam

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