Kiran Anil Gothi Vs ITO (ITAT Nagpur)
Income Tax Appellate Tribunal (ITAT) Nagpur bench has, in a recent order, remanded the appeal of Kiran Anil Gothi against the Income Tax Officer (ITO) for the assessment year 2018-19. The case, which revolves around an addition of ₹34,31,971 as cash credit under Section 68 read with Section 115BBE of the Income Tax Act, 1961, will now return to the Commissioner of Income Tax (Appeals) (CIT(A)) for fresh consideration.
The dispute originated during the assessment proceedings when the assessee, Kiran Anil Gothi, reported ₹34,31,971 as commission receipts in the Income Tax Return (ITR) for the assessment year 2018-19. The Assessing Officer (AO) issued statutory notices under Sections 143(2) and 142(1) of the Act, requesting details of the commission received, including the names and Permanent Account Numbers (PANs) of the payers, along with bank statements and other relevant documents. The AO sought to verify the identity, creditworthiness, and genuineness of these transactions.
However, the assessee reportedly failed to respond to these requests or furnish the requisite documentation, leading the AO to pass an ex-parte order. Citing the provisions of Section 68 of the Act, which allows for any unexplained sum found credited in the books of account to be charged to income tax, the AO treated the entire amount of ₹34,31,971 as cash credit. This sum was then added to the assessee’s total income under Section 68 read with Section 115BBE.
