Dipak Parmar Vs ITO (ITAT Surat)
ITAT Surat held that purchase of credit cards by making cash payments without providing explanation with regard to nature and source of money is liable to be added under section 69A of the Income Tax Act.
Facts- Assessee filed return of income for AY.2017-18 on 10.11.2017, declaring total income at Rs.2,78,400/-. The assessee had made cash payment towards credit card purchases of Rs.6,16,142/-. AO asked the assessee to explain the source of the above cash payments. The AO also issued show cause notice which was not replied to by the Therefore, the AO held that the amount of cash payment of Rs.6,16,000/- remained unexplained and constitutes income of the assessee u/s 69A of the Act. He also held that tax on this income will be charged u/s 115BBE of the Act. CIT(A) dismissed the appeal of assessee. Being aggrieved, the present appeal is filed.
Conclusion- Held that in the present case, assessee has purchased the credit cards by making cash payments. It is, therefore, clear that assessee was owner of money (cash) which was used to make credit card purchases. However, he has not explained the nature and source of acquisition of such money, being cash, of Rs.6,16,142/-. The AO has added the same u/s 69A of the Act due to non-compliance by assessee to the statutory notices as well as the show cause notice. The CIT(A) has rightly confirmed the addition because assessee did not attend before him or filed any written submission in support of the grounds raised before him. Before us also, the assessee has not filed any written submission in support of the grounds raised by him. As discussed earlier, provisions of section 69A of the Act are clearly attracted to the facts of the instant appeal. Hence, the order of CIT(A) is upheld and appeal of the assessee is dismissed.
