ITO 19(1)(1), MUMBAI vs. NITIN GANPAT MUDRAS, MUMBAI

At the time of hearing the Ld. DR fairly admitted that the tax effect involved in the quantum disputed by the Revenue is less than Rs. 10 lakhs, hence, in view of the Circular No. 21/2015 dt. 10.12.2015 the Revenue is precluded from filing this appeal before the Tribunal. Accordingly, the appeal filed by the Revenue is dismissed in limine.

Now, we shall take up the appeal filed by the assessee. None appeared on behalf of the assessee even though the case was adjourned at the request of the assessee on the earlier occasion. Hence, we proceed to dispose of the appeal ex parte.

The only issue urged in the appeal of the assessee relates to the addition of Rs. 4,40,000/- made by the Assessing Officer u/s 68 of the Income Tax Act, 1961. During the course of assessment proceedings, the Assessing Officer noticed that the assessee has paid Citi Bank credit card bills to the tune of Rs.6,67,127/-. However, the assessee could not explain sources relating to certain entries aggregating to Rs.4,40,000/-. Even though the assessee claimed that payment was made by way of transfer of balance available under other credit card accounts, yet the Assessing Officer noticed that the said claim did not tally with the entries available in the bank account. Therefore, the Assessing Officer added a sum of Rs. 4,40,000/- u/s 68 of the Income Tax Act, 1961 and the same was confirmed by the Ld. CIT(A). Before us also, no material was furnished to substantiate the contentions of the assessee. Accordingly, we confirm the order of CIT(A) on this issue.

In the result, both the appeals are dismissed. Order pronounced in the open court on 4th May, 2016.