Sureshchandra Paranjivandas Panchal Vs ITO (ITAT Surat)
Credit Card Payment Additions Quashed Because Related Business Transactions Were Not Considered; ITAT Allows Appeal Because Income and Commission Details Were Ignored by Tax Authorities; Undisclosed Income Additions Set Aside Because AO Failed to Examine Available Evidence: ITAT Surat.
The Income Tax Appellate Tribunal (ITAT), Surat, allowed the appeal of the assessee against the order of the Commissioner of Income Tax (Appeals), NFAC, for Assessment Year 2011-12. The assessee, an individual, had originally filed a return declaring total income of Rs.1,79,840/-.
Based on AIR information, the Assessing Officer (AO) observed that the assessee had made credit card payments of Rs.2,36,100/- to ICICI Bank Ltd. The assessment was reopened under section 147, and notice under section 148 was issued. As the assessee did not respond to statutory notices, the assessment was completed under section 144. The AO treated the credit card payments as unexplained and added Rs.2,36,100/- as undisclosed income. The AO also noted cash deposits of Rs.6,74,600/- in the assessee’s bank account and added Rs.4,38,500/- as unexplained cash deposits. An additional amount of Rs.15,184/- relating to non-cash deposits in the bank account was also added as undisclosed income. The CIT(A) subsequently dismissed the assessee’s appeal.
