ASIF ABDULHAK SOUDAGAR,KUMTA vs. INCOME TAX OFFICER WARD -2, KARWAR, KARAWAR

The appeal is filed by the assesse against the order of NFAC/CIT(A) passed u/sec 147 r.w.s 144 r.w.s144B of the Act and u/sec 250 of the Act. The assessee has raised the grounds of appeal

The brief facts of the case are that, the assessee is engaged in a business under the name Soudagar Chicken Centre Kumta and the assesee has not filed the return of income for A.Y.2019-2020.The Assessing Officer (AO) based on the information from ITBA data analytics NMS found that the assessee has made substantial cash deposits aggregating to (i) Rs.1,34,29,950/- in the bank account maintained with HDFC Bank and (ii) Rs.7,98,35,150/- account maintained with ICICI Bank Limited during the F.Y2018-19. The Assessing Officer (A.O) has reason to believe that the income has escaped assessment and issued notice u/sec148 of the Act and there was no compliance. Further the Assessing Officer has issued notice u/sec142(1) of the Act on the assessee to explain the sources of cash deposits made in the bank accounts and also a show cause notice was issued, but there was no compliance by the assessee. Since, no explanations/details were filed, the AO has issued notice u/sec 133(6) of the Act on the two banks and obtained bank statements of the assessee for F.Y.2018-19. The A.O. based on the bank account statements find aggregate cash deposits are Rs.9,32,65,100/- and relied on the information available on record has invoked the provisions Asif Abdulhak soudagar. of Sec. 144 of the Act and considered the nature of business of the assessee and has estimated the business income undisclosed by the assessee @10% of aggregate cash deposits which works out to Rs.93,26,510/- and finally assessed the total income of Rs.93,26,510/- and passed the order u/sec 147 r.w.s 144 r.w.s144B of the Act dated 13.12.2023.