Soma Sekhar Bingumalla Vs ITO (ITAT Hyderabad)
Summary: The Hyderabad Bench of the Income Tax Appellate Tribunal considered the appeal filed by Soma Sekhar Bingumalla for Assessment Year 2017-18 against the order of the Additional/JCIT (Appeals), Faridabad, dated 16-07-2025, arising from the assessment order passed under Section 143(3) of the Income-tax Act, 1961 dated 18-12-2019.
The assessee had filed his return of income on 31-03-2018 declaring income of Rs.2,65,500/-. The return was initially processed under Section 143(1), after which the case was selected for limited scrutiny through CASS and notice under Section 143(2) was issued. During assessment proceedings, the Assessing Officer noticed that the assessee had availed two personal loans from Central Bank of India. Loan Account No.3330811036 for Rs.3,72,000/- was sanctioned on 19-03-2014, while Loan Account No.3554133608 for Rs.4,80,000/- was sanctioned on 27-07-2016. The loans, together with interest, were repaid during the demonetization period on 12-11-2016.
The AO called upon the assessee to explain the source of cash deposits used for repayment. The assessee did not furnish a satisfactory explanation concerning cash deposits aggregating to Rs.5,07,481/- used towards repayment of the loan availed on 19-03-2014 and interest. The AO consequently treated Rs.5,07,481/- as unexplained money under Section 69A and determined the income at Rs.7,72,981/-. The Additional/JCIT (Appeals) upheld the assessment.
