Yaganti Sunkar Vs ITO (ITAT Hyderabad)
Material Facts
The assessee, an individual, did not file a return of income for Assessment Year 2016-17. Based on departmental information regarding cash deposits of ₹80,30,500 in a bank account, the Assessing Officer reopened the assessment under Section 147 by issuing a notice under Section 148 dated 13.03.2023. In response, the assessee filed a return declaring gross commission receipts of ₹5,48,000 and net income of ₹4,82,637. During reassessment, the Assessing Officer found cash deposits of ₹1,61,51,200 and other credits of ₹2,20,92,928, aggregating to ₹3,82,44,128.
Procedural History
The Assessing Officer completed the assessment under Sections 147 read with 144B by treating the entire bank credits as business turnover and estimating income at 8%, resulting in an addition of ₹30,59,530 and assessed total income of ₹35,42,170. The Commissioner of Income Tax (Appeals), NFAC, confirmed the addition. The assessee appealed before the ITAT but remained unrepresented despite two hearing opportunities. The Tribunal proceeded ex parte after hearing the Departmental Representative.
Legal Issue
Whether the addition of ₹30,59,530, computed at 8% of total bank credits treated as business turnover, was sustainable.
Relevant Statutory Provisions
- Sections 147, 148 and 144B of the Income-tax Act, 1961
- Section 44AD of the Income-tax Act, 1961
Assessee’s Submissions
