ABHIJIT NERURKAR,MUMBAI vs. ITO 21(1)(1), MUMBAI

This appeal by assessee u/s 253 of the Income-Tax Act (“The Act”) is directed against the order of ld. CIT(A)-33, Mumbai dated 30.03.2016 for Assessment Year (AY) 2007-08.

Brief facts of the case are that for Financial Year (FY) 2006-07, the assessee has not filed any return of income. On the basis of information of cash deposit in ICICI Bank of Rs. 43,94,388/-, the Assessing Officer (AO) issued notice dated 20.06.2011 for seeking details of return of income for AY 2007-08, 2008-09 & AY 2010-11. When no response was made by assessee another notice dated 06.09.2011 was issued through Tax Inspector. In Abhijit Nerurkar response to the notice dated 06.09.2011, the assessee appeared before the AO and contended that the income of assessee is below the taxable limit, thus, no return of income was filed. The AO asked the assessee to furnish his submission in writing. No such written explanation was furnished by assessee. The AO issued notice u/s 148 dated 04.02.2012. The assessee made no response for the compliance of notice u/s 148 of the Act. The AO further issued notice u/s 142(1) dated 20.09.2012. The assessee again made no compliance. The AO further issued notice u/s 131 to the assessee to appear in person on 08.02.2013. The assessee failed to appear in response to the notices issued by AO and not filed return of income in response to the notices. Thus, the AO in absence of proper clarification and proper reply, clarification and responses to the various notices proceeded to make the assessment u/s 144 r.w.s. 148 of the Act. The AO passed the assessment order on 11.03.2013 u/s 144 r.w.s. 148 and made the addition of Rs. 43,94,388/-. On appeal before the ld. CIT(A), the assessee remained unsuccessful in appeal before the ld. CIT(A). Further, aggrieved by the order of ld. CIT(A), the assessee has filed the present appeal before us raising the following grounds of appeal:

We have heard the ld. Authorized Representative (AR) of the assessee and ld. Departmental Representative (DR) for the Revenue and perused the material available on record. Ground No.1 relates to validity of assessment order passed u/s 144 r.w.s. 148 of the Act. The ld. AR of the assessee submitted that he is not pressing the Ground No.1 of the appeal. The ld. DR for the Revenue has no objection. Considering the contention of ld. AR of the assessee, the Ground No.1 of the appeal is dismissed as not pressed.

Ground No.2 relates to the addition of Rs. 43,94,388/-. The ld. AR of the assessee submitted that in support of Ground No.2 of the appeal, the assessee has filed application for admission of additional evidence. Perusal of the application reveals that before the ld. CIT(A), the assessee contended the assessee was not having a copy of bank statement of ICICI Bank. The Bank had frozen the operation of bank account. The assessee was not able to provide necessary information and explanation with documentary evidence before the AO as well as the First Appellate Authority. The assessee requested the ld. CIT(A) to direct the AO to provide the copy of bank statement and relevant information received by the AO on the basis of addition was made. The AO provided the copy of bank statement of ICICI Bank Account. Before the ld. CIT(A), the assessee explained that majority of deposits in the bank account is the deposit of consideration of share 3 Abhijit Nerurkar transactions. The assessee requested the ld. CIT(A) for additional time to submit the documentary evidence. The ld. AR of the assessee made the submission. Further, the assessee had filed copy of application filed before the ld. CIT(A) dated 23.11.2015. Copy of letter dated 20.11.2010 issued by ICICI Bank. Copy of letter of AO dated 28.12.2015 for supply of statement of account of the assessee. It was prayed that the additional evidence filed before the Tribunal are relevant and essential for proper adjudication of grounds of appeal