Kshirod Kumar Pattnaik Vs ITO (ITAT Cuttack)
Summary: The appeal arose from an order of the Commissioner of Income Tax (Appeals) for Assessment Year 2012-13. The assessee challenged the reassessment proceedings initiated under Sections 147 and 148 of the Income-tax Act, the assessment framed under Sections 144/147, the jurisdiction of the Income Tax Officer (ITO), and the additions made towards alleged unexplained fixed deposits and bank interest.
The assessee had originally filed a return declaring total income of ₹35,09,538. Subsequently, a survey conducted by the Investigation Wing revealed fixed deposits in the assessee’s name. Based on the survey report and the information gathered from the bank, the Assessing Officer reopened the assessment after recording reasons and issued a notice under Section 148. The assessee did not file a return in response to the notice, and several notices under Section 142(1) were issued. According to the Assessing Officer, there was repeated non-compliance, leading to completion of the assessment under Section 144.
The Assessing Officer obtained information from the bank showing fixed deposits aggregating ₹1.05 crore and accrued interest of ₹5,63,203. As the assessee failed to satisfactorily explain the source of the fixed deposits or the omission of interest income from the return, the Assessing Officer treated ₹1.05 crore as unexplained investment under Section 69 and added the interest income under the head “Income from Other Sources,” determining total income at ₹1,45,72,740.
