SUNI DAVIS THAKOLKKARAN,SURAT vs. INCOME TAX OFFICER, WARD-2(3)(6), SURAT, SURAT
What did the Tribunal hold?
The Tribunal upheld the validity of the re-assessment proceedings and the addition made by the lower authorities. Since the assessee failed to provide any explanation or evidence regarding the unexplained credits in his bank account, the action of the lower authorities was accepted.
What were the facts?
The assessee's return for AY 2011-12 was initially processed and accepted. Subsequently, the case was re-opened based on information that the assessee maintained a bank account with significant credit entries not disclosed in the original return. Despite multiple opportunities, the assessee failed to provide explanations or substantiation for these credits.
What were the issues?
The primary issues were the validity of re-assessment proceedings initiated under Section 147 and the confirmation of additions made on account of unexplained credits in the assessee's bank account, especially when the assessee failed to appear or provide explanations.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
िनधा�रती की ओर से /Assessee by None राज� की ओर से /Revenue by Shri Vinod Kumar, Sr-DR अपील पंजीकरण/Appeal instituted on 09.08.2023 सुनवाई की तारीख/Date of hearing 29.12.2023 उद्घोषणा की तारीख/Date of 29.12.2023 pronouncement Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of National Faceless Appeal Centre, Delhi [for short to as ‘NFAC/Ld. PCIT’] dated 14.06.2023 for assessment year 2011-12, which in turn arises out of assessment order passed by Assessing Officer passed assessment order under section 143(1) r.w.s 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 30.11.2018. The assessee has raised the following grounds of appeal:-
1. That on the facts and circumstances of the case, the Ld. CIT(A) has erred in law and in facts in passing the appellate order ex pare without affording the opportunity of hearing. It is therefore prayed that the appellate order passed by ethe CIT(A) be quashed on the ground of principles of natural justice and fairness.
(A.Y 11-12) Suni Davis Thakolkkaran
That on the facts and circumstances of the case, the Ld. CIT(A) has erred in law and in facts in confirming the action of the Ld.AO of initiating the re-assessment proceedings u/s 147 r.w.s. 148 of the Act.
3. On the facts and circumstances of the case, the Ld. CIT(A) has erred in law and in facts in confirming the action of the Ld.AO of making addition to the tune of Rs.88,66,961/- on the ground of unexplained credits in bank account of the appellant. 4. Your appellant craves liberty to add, alter, amend or delete any or all the grounds of appeal
stated above.”
2. Brief facts of the case are that assessee is an individual filed his return of income for assessment year 2011-12 declaring income of Rs.2.40 lakh. Subsequently return of assessee was processed on 31.03.2012 and accepted. Thereafter, the case was re-opened on the basis of information of DDIT(Inv.), Surat that assessee maintained bank account in Citi Bank, Ghod Dod Branch, Surat and carried out transaction in the name of M/s Litty Hire Co. On the basis of such information, the Assessing Officer was of the view that assessee was indulging in regular transaction in his bank account and not disclosed such income, in his returned income. The assessee disclosed income from “salary” and “house property” in his returned income. Notice under section 131 was issued upon the assessee on 14.12.2017, which was not responded by assessee. The Assessing Officer after recording reasons that income of assessee to the extent of credit in the bank account at Rs.88,66,961/- has escaped assessment. Further Notice under section 148 was issued to the assessee. The assessee in response filed return of income on 09.05.2018 declaring same income as declared initially. The Assessing Officer proceeded for re- 2 (A.Y 11-12) Suni Davis Thakolkkaran assessment. The assessing officer in para-8 of assessment order recorded that six notices were served to the assessee to furnish details to substantiate the transaction in his bank account. The Assessing Officer noted that despite giving sufficient opportunities, the assessee neither field any reply nor shown any reasonable and sufficient explanation about such transaction in his bank account. The Assessing Officer thereby added entire credit entries of Rs.88,66,961/- in the income of assessee in assessment order dated 30.11.2018. Aggrieved by the order of Assessing Officer, assessee filed appeal before Ld.CIT(A). The appeal of assessee migrated before NFAC/Ld.CIT(A). Before NFAC/Ld.CIT(A) again assessee has not filed any response despite granting four opportunities to the assessee. The NFAC/Ld.CIT(A) on the basis of materials available on record and considering facts of the case upheld the validity of re-opening as well as addition on merit, by its speaking order.
Further aggrieved the assessee has filed present appeal before the Tribunal. Notice of appeal hearing was served on the assessee on three occasions, by way of email as well as by registered post with acknowledgment due (RPAD). The notice sent through RPAD is returned back with the remarks by Postal Authority “no such person on the address given”. Today (29.12.2023) neither the assessee nor his representative has to come to attend the hearing. Therefore, we left no option except to decide matter on the basis of materials available on record and on hearing the submission of Ld. Senior (A.Y 11-12) Suni Davis Thakolkkaran
More judgments on Section 147
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- Neo Incorporation, Rajkot vs DCIT Circle- 1(2), RajkotITA 471/RJT/2026[2012-2013]Status: Disposed21 Oct 2026AY 2012-2013
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