Kshirod Kumar Pattnaik Vs ITO (ITAT Kolkata)
The appeal before the Income Tax Appellate Tribunal, Kolkata Bench, arose from the order of the Commissioner of Income Tax (Appeals), Bhubaneswar, for Assessment Year 2012-13. The assessee challenged the reassessment proceedings, the jurisdiction of the Assessing Officer, the additions made towards unexplained investment in fixed deposits and bank interest, and the validity of the assessment completed under sections 144 and 147 of the Income-tax Act.
The assessee had originally filed a return of income declaring total income of Rs.35,09,538. Subsequently, a survey under section 133A was conducted on 5 February 2015. Based on the survey report and impounded documents, the Assessing Officer found that fixed deposits aggregating to Rs.1.50 crore had been made during the relevant year, whereas the balance sheet disclosed deposits and investments of only Rs.7,15,280 and no interest income had been offered to tax. After recording reasons and obtaining approval, the Assessing Officer issued a notice under section 148. The assessee did not file a return in response to the notice and, despite several notices under section 142(1), there was repeated non-compliance. Information obtained from the bank showed fixed deposits aggregating to Rs.1.05 crore with accrued interest of Rs.5,63,203. As the assessee failed to satisfactorily explain the source of these deposits, the Assessing Officer treated Rs.1.05 crore as unexplained investment under section 69 and added Rs.5,63,203 as income from other sources, completing the assessment under sections 144/147.
