Sureshbhai Raghubhai Thorat Vs ITO (ITAT Surat)
The ITAT Surat dismissed an appeal filed by Sureshbhai Raghubhai Thorat, thereby confirming the Commissioner of Income Tax (Appeals) [CIT(A)]’s order which had upheld an addition of ₹4.10 crore under Section 69 of the Income-tax Act, 1961. This addition was made by the Assessing Officer (AO) as unexplained investment after the assessee failed to respond to multiple notices during reassessment proceedings initiated under Section 147 of the Act. The reassessment was based on information indicating a significant investment made by the assessee, the source of which was not provided despite repeated opportunities. The CIT(A) had dismissed the assessee’s appeal both for non-prosecution and on merit, noting the lack of corroborative evidence to support the grounds of appeal and the failure of the assessee to discharge the onus of proving the source of the investment.
Before the ITAT, the assessee again remained non-compliant, failing to appear despite the withdrawal of their initially appointed Authorized Representative and the issuance of four subsequent hearing notices. No written submissions or requests for adjournment were made. The ITAT observed that the assessee had been given ample opportunity at all levels – before the AO, the CIT(A), and the Tribunal – to explain the source of the ₹4.10 crore investment. The persistent silence of the assessee strongly suggested a lack of any valid explanation or supporting material. Consequently, the ITAT found no reason to interfere with the concurrent findings of the lower authorities regarding the unexplained investment under Section 69 of the Act.
