Amit Kumar Bhati Vs ITO (ITAT Delhi)
In the case of Amit Kumar Bhati vs. ITO (ITAT Delhi), the appeal arose from an assessment year 2010-11 where the Assessing Officer (AO) initiated proceedings under section 147 of the Income Tax Act, 1961, based on information regarding cash deposits and bank transactions by the assessee, who had not filed an income tax return. The AO issued a notice under section 148, prompting the assessee to declare an income of Rs. 46,100/-.
The AO noted significant cash deposits and transactions totaling Rs. 1,98,59,760/- in the assessee’s bank account. The assessee explained that a portion of this amount was received as an advance for land purchase from farmers and another part was from the sale proceeds of immovable property by his grandmother, who had no bank account and hence used the assessee’s account. Despite these explanations, the AO considered 25% of the deposits as unaccounted income and added Rs. 49,64,940/- to the total income.
The assessee appealed to the Commissioner of Income Tax (Appeals) [CIT(A)], who raised doubts about the transactions with Krish Builders and the repayment details provided by the assessee. The CIT(A) observed discrepancies in the explanations and lacked satisfactory evidence to establish the genuineness of the transactions. Therefore, the CIT(A) not only confirmed the AO’s addition but also enhanced it to Rs. 1,20,00,000/-, considering the lack of credibility in the assessee’s claims and transactions.
