DEEPAK SITARAM NETKE,MUMBAI vs. ITO 25(1)(4), MUMBAI

The appeal is barred by limitation by 24 days. The assessee has moved a petition requesting the bench to condone the delay. I heard the parties and perused the petition. Having regard to the submissions made in the petition, I condone the delay and admit the appeal for hearing.

None appeared on behalf of the assessee, even though the notice of hearing was sent to him by registered post on more than one occasion. Hence I proceed to dispose of the appeal ex-parte, without the presence of the assessee.

The assessee’s sources of income were income from salary and other sources. The assessing officer reopened the assessment on receiving information that the assessee has made cash deposits aggregating to Rs.22,83,000/- in his bank account. The assessee explained that the deposits have been made, inter alia, out of (a) Gift received from father - Rs.12,65,000/- (b) Friendly loans received - Rs. 3,75,000/- (c) Cash withdrawals made from bank Rs.10,84,350/- Since the assessee could not substantiate the explanations, the AO assessed the above said three amounts aggregating to Rs.27,24,350/- as income of the assessee. The Ld CIT(A) took the view that the peak credit of deposits should be assessed as income of the assessee. Accordingly the Ld CIT(A) sustained the addition to the extent of peak credit amount of Rs.17,55,050/- and granted relief to the extent of Rs.9,69,300/-. Still aggrieved, the assessee has filed this appeal before the Tribunal.

I heard Ld D.R and perused the record. I notice that the aggregate amount of deposits found in the bank account was Rs.22,83,000/-. As against this, the AO has made addition of Rs.27,24,350/- on the basis of cash flow statement given by the assessee. However, the Ld CIT(A) has restricted the addition to the amount of peak credit of Rs.17.55 lakhs. Before the Tribunal, the assessee has not furnished any material to show that the peak credit worked out by the Ld CIT(A) was wrong. I also notice that the assessee could not substantiate the claim of receipt of gifts and loans. Under these set of facts, I have no other option, but to confirm the order passed by Ld CIT(A).

In the result, the appeal of the assessee is dismissed. Order has been pronounced in the Court on 18.9.2017.