BINDU NAMBIAR,MUMBAI vs. BIPIN KUMAR GUPTA, PIRAMAL CHAMBER WARD

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ITA 1229/MUM/2024Status: DisposedITAT Mumbai24 September 2024AY 2012-13Bench: the AO wherein the AO has issues notice dated 09-01-2024 to Assessee to submit the relevant details and explanation on or before 19-01-2024.” 3. We have heard both the sides and perused the material on record. The relevant facts that emerged from the material on record are that the Assessee, an individual, did not file return of income for the Assessment Year 2012-2013. However, as per the information available with the Income Tax Department, the Appellant had undertaken transactions aggreg1 pages

AI SummaryAllowed

Facts

The assessee did not file a return of income for AY 2012-13. Reassessment proceedings were initiated under Section 147. The AO made additions of INR 5,30,132/- for credit card expenses and INR 83,333/- for professional receipt. The CIT(A) dismissed the assessee's appeal.

Held

The Tribunal noted that the assessee provided bank statements showing credit card payments aggregating to INR 5,62,688/-, which included the amount added by the AO. Since the source of these credit card payments was explained through bank accounts, the addition made by the AO could not be sustained.

Key Issues

Whether the addition of credit card expenses and professional receipt by the Assessing Officer is sustainable in law and on facts.

Sections Cited

69A, 143(3), 147, 148, 142(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SMC BENCH, MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL "SMC" BENCH, MUMBAI SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER Bindu Pradeep Nambiar, 47/A/B, Kolivery Village, Kalina Santacruz (East), Mumbai - 400098 [PAN:ADTPN9518J] …………. Appellant Vs Income Tax Officer, Ward No.22(1)(3) Presently Income Tax Officer, 22(1)(1) Room No. 319, Piramal Chambers, Lalbaug, Mumbai – 400012. …………. Respondent Appearance For the Appellant/Assessee : Shri Pradeep Nambiar For the Respondent/Department : Shri Himanshu Sharma Date Conclusion of hearing : 03.07.2024 Pronouncement of order : 24.09.2024 O R D E R Per Rahul Chaudhary, Judicial Member: 1. By way of the present appeal the Assessee has challenged the order dated 10/01/2024, passed by the National Faceless Appeal Centre (NFAC), Delhi, [hereinafter referred to as the ‘CIT(A)’], whereby the Ld. CIT(A) had dismissed the appeal of the Assessee against the Assessment Order, dated 26/12/2019, passed under Section 143(3) read with section 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for the Assessment Year 2012-13. Delay of 12 days in filing the appeal is condoned in view of the fact that the husband of the appellant was suffering from heart ailment and was facing medical issues. Therefore appellant could not arrange to get appeal filed within specified period. Assessment Year: 2012-13

The appellant has raised following grounds of appeal :

“1. The Income Tax Officer-22(1)(3), Mumbai ("the A.O.") erred in adding Rs.5,30,132/- to the income of the Assessee u/s. 69A of the 1. T. Act, 1961 treating the same as an unexplained income.

2. The CIT(A) has erred in law and on facts in upholding the disallowance made by the AO in t Assessment Order in respect of payment of credit card expenditure of Rs.5,30,132/-.

3. The CIT(A) has erred in law and on facts in passing an appellate order dated 10-01-20 whereas the remand proceedings were pending before the AO wherein the AO has issues notice dated 09-01-2024 to Assessee to submit the relevant details and explanation on or before 19-01-2024.”

We have heard both the sides and perused the material on record. The relevant facts that emerged from the material on record are that the Assessee, an individual, did not file return of income for the Assessment Year 2012-2013. However, as per the information available with the Income Tax Department, the Appellant had undertaken transactions aggregating to INR.78,95,010/- in respect of which payments were made through credit card. Therefore, reassessment proceedings were initiated under Section 147 of the Act. The Assessee did not file any return of income in response to notice issued under Section 148 of the Act. Therefore, notice, dated 7/11/2019, was issued to the Appellant under Section 142(1) of the Act requiring the Appellant to file return of income for the Assessment Year 2012-13. However, the aforesaid notice was not complied with. Thereafter, a show-cause notice, dated 08/12/2019, was issued to the Appellant. In response to the same, the Appellant filed details of sale and purchase of properties alongwith copy of agreement and computation of capital gain. However, Appellant failed to furnish any details regarding payment of credit card bills aggregating to INR 5,30,132/- and receipt of INR 3,33,332/-. Assessing Officer noted that as per form 26AS which was verified from TRACES, the Appellant had received INR 83,333/- from Alimia India Loyalty Management Private Limited. 2 Assessment Year: 2012-13 Therefore, vide Assessment Order, dated 26/12/2019, passed under Section 147 read with 143(3) of the Act, the Assessing Officer assessed total income of the Appellant for the Assessment Year 2012-13 at INR 6,13,470/- after making addition of INR.5,30,132/- in respect of credit card expenses and addition of INR.83,333/- in respect of professional receipt.