Srinivasa Rao Bathini Warangal Vs ITO (ITAT Hyderabad)
ITAT Hyderabad dismissed the appeals of Srinivasa Rao Bathini Warangal, upholding the Assessing Officer’s (AO) decision to add unexplained cash credits under Section 68 of the Income Tax Act. The case involved cash deposits in the assessee’s bank account, which he claimed were loans from multiple individuals, including agriculturists and businesspersons. However, he failed to provide sufficient evidence to establish the genuineness of the transactions or the creditworthiness of the lenders. The affidavits submitted were deemed stereotyped, and crucial details like PAN and bank records were missing. Consequently, the CIT (A) and ITAT found the assessee’s explanation inadequate and sustained the additions made by the AO.
Additionally, the ITAT upheld the disallowance of a ₹1 lakh deduction under Section 80C for LIC premium and tuition fees, as the assessee did not provide supporting documents. The tribunal observed that similar issues arose for both AYs 2011-12 and 2012-13, leading to a consistent ruling. Despite the assessee’s argument that the AO had accepted the evidence during remand proceedings, the ITAT concluded that the overall lack of credible documentation warranted the rejection of the appeal. Both appeals were dismissed on January 15, 2025.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
