KIRAN VENKAT ANAND SANAKA,HYDERABAD vs. ITO., WARD-9(1), HYDERABAD

All the amounts which we have credited in my accounts belongs to employer and all the payments were made to him through account payee only. Later the employer has rejected the facts before the tax authorities. 3. the same employer is under Enforcement Directorate investigations and they have included me also.

As I am an individual and helpless person before these investigating authorities and revenue authorities, I request the respected Judicial Authority to include in the proceedings by adding MPM hotels and its Directors of MPM hotels for the same.”

Facts of the case, in brief, are that assessee is an individual and was a non-filer for A.Y 2011-12. On the basis of information available with the department, it was found that the assessee had made cash deposits in his bank accounts to the tune of Rs. 1,32,80,170/-. As assessee has not filed his return of income, a notice u/s 148 of the Act dated 23/03/2018 was issued however the same was remained uncompiled with. Subsequently, the statutory notices were also issued vide dated 13/11/2018 & 11/12/2018. In response to the notice, the assessee filed the tax return offering business income of Rs. 6,62,456/- out of gross receipts of Rs.82,80,710/- and salary income of Rs. 3,48,600/-. He also submitted ledger of payment made to M/s Sujana metals products limited and further submitted that the funds deposited in bank account does not belong to him, the same belongs to M/s. MPM Hotel, but the assessee has not submitted any documentary evidence other than the ledger. As no satisfactory explanation was offered for cash deposits of Rs.1,32,80,170 except some claims, the AO concluded the assessment proceedings and passed the assessment order u/s 143(3) r.w.s.147 of the Income-tax Act, 1961 on 24/12/2018 determining total assessed income at Rs.1,36,28,770/- and levied tax thereof at Rs.1,10,99,696/-. Thus, Assessing Officer completed the assessment and passed assessment order dt.24.12.2018 u/s 143(3) r.w.s. 147 of the Act.

Feeling aggrieved with the order of ld.CIT(A), assessee is now in appeal before us.

Before us, ld.AR submitted that the assessee has failed to provide necessary information and appear before the lower authorities. Hence, the ld. AR requested the Bench to remand the matter back to the file of Assessing Officer. Ld.AR further submitted that as the assessee has sufficient cause from putting in appearance before the lower authorities, matter may kindly be remitted back to the authorities below for afresh adjudication.

Per contra, the ld.DR relied upon the orders of lower authorities.

The assessee shall be at liberty to file documents, if any, as required for proving his case and the Assessing Officer shall consider the evidences, if any, filed by the assessee. Needless to say the Assessing Officer shall examine those documents / evidence filed by the assessee and also the other documents available on record. After considering the documents filed by the assessee and the submissions made by the assessee, the Assessing Officer shall pass a detailed speaking order dealing with the contentions of the assessee. We have not adjudicated the other grounds on merits as we are setting aside the orders passed by the lower authorities to the file of Assessing Officer for fresh adjudication. Thus, the grounds of the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is treated as allowed for statistical purposes.