PRAMOD KUMAR BIHARI,BHUBANESWAR vs. ITO, WARD-4(3), BHUBANESWAR

This is an appeal filed by the assessee against the order of CIT(A)-2,

Bhubaneswar, dated, 27.10.2016 for the assessment year 2009-2010 .

justified in confirming the order of the Assessing Officer making addition of

Rs.6,68,469/- u/s.69C of the Income tax Act, 1961.

authorities and materials available on record. The undisputed facts of the

case are that during the course of assessment proceedings, the Assessing

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Officer found that the assessee has five credit cards of different banks

namely; ICICI Bank, Citi Bank, HDFC Bank, state of India and Axis Bank.

From the AIR information, the Assessing Officer found that the assessee

had made payment of Rs.25,04,397/- using three credit cards. He further

found that the assessee has shown gross receipts of Rs.20,96,350/-,

expenditure of Rs.19,28,650/- and net profit of Rs.1,67,700/- from the

business of readymade garments. Therefore, the Assessing Officer

concluded that the expenditure shown by the assessee was Rs.19,28,650/-

and the payments shown to have been made using five credit cards of

Rs.25,97,119/- and the source of balance expenditure of Rs.6,68,469/-

remained unexplained. The assessee was asked by the Assessing Officer

for details of transaction in respect of five credit cards but the assessee

submitted details in respect of only three credit cards namely; ICICI Bank,

State Bank of India and Axis Bank. Further, the total credits in these three

credit cards did not match with the gross receipts of Rs.20,96,350/- shown

in the return of income. Therefore, the Assessing Officer made addition of

Rs.6,68,469/- to the income of the assessee u/s.69C of the Act.

observing that it was not in dispute that payment of Rs.25,04,397/- was

made by the assessee using the five credit cards. The assessee has only

one account in ICICI Bank and the receipts in that account are of

Rs.15,35,073/-. Further, receipts in ICICI credit card, Axis Bank credit card

and Citi credit card are of Rs.47,317/-, Rs.74,065/ and Rs.5,00,556/-

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aggregating of the receipts of three credit cards is Rs.21,07,011/-. The

gross receipts shown by the assessee in the return of income are of

Rs.20,96,350/-. Therefore, considering the entire facts of the case, he was

in agreement with the Assessing Officer that the source of payment of

Rs.6,68,469/- remained unexplained and addition made by the Assessing

Officer u/s.69C of the Act was confirmed by him.

me.

authorities. When the Bench asked ld A.R. of the assessee for copies of

bank statements of all the credit cards used by the assessee of different

banks, he expressed his inability to submit the same on the ground that

the matter was more than 7 to 8 years old.

of payment made through three five credit cards to the extent of

Rs.6,68,469/- before the lower authorities. No material was brought before

the Assessing Officer or the CIT(A) or even before me to show that

Rs.6,68,469/- paid through five credit cards was out of the explained

source of the assessee. In absence of the same, I find no good and

justifiable reason to interfere with the order of the CIT(A), which is hereby

confirmed and ground of appeal of the assessee is dismissed.

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Date Initial 1. Draft dictated on 23/05/17 Sr.PS 2. Draft placed before author 23/05/17 (dictation Sr.PS pad has been enclosed along with original file) 3. Draft proposed & placed AM before the second member 4. Draft discussed/approved AM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS /PS 6. Kept for pronouncement on Sr.PS 7. File sent to the Bench Clerk Sr.PS 8. Date on which file goes to the H.C. 9. Date on which file goes to the SPS 10. Date of dispatch of Order.