Dharmendra Shantilal Patel-HUF Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that appeal filed by the assessee is liable to be dismissed as there has been deliberate non-compliance on the part of the assessee at all the stages of proceedings. Accordingly, order of CIT(A) upheld.
Facts- The assessee did not file a return of income for the Assessment Year 2014-15. During the Financial Year 2013-14, the assessee advanced a sum of Rs. 83,45,000/- to Shri Dharmendra S. Patel (individual). However, AO was of the view that the failure on part of the assessee to submit a return of income for the relevant assessment year has resulted in this advance escaping assessment. Upon further examination of the assessee’s bank statements, the Assessing Officer observed that significant funds were being transferred in and out to various parties. Consequently, the case of the assessee was re-opened u/s. 147 of the Income Tax Act. However, in response to the notice issued u/s. 148, the assessee did not file a return of income.
Despite various efforts by AO, the assessee did not attend the hearing nor did he submit any details. Given the absence and lack of response, the AO held that the advance of Rs. 83,45,000/- should be added to the total income of the assessee. Additionally, penalty proceedings were initiated u/s. 271(1)(c) of the Income Tax Act due to the non-compliance and the resultant underreporting of income.
