ITO Vs Nileshkumar Jayantilal Patel (ITAT Surat)
The Income Tax Appellate Tribunal dismissed two appeals filed by the Revenue against the order of the National Faceless Appeal Centre (NFAC) for Assessment Years 2010-11 and 2011-12. The dispute related to additions made by the Assessing Officer under Section 68 of the Income-tax Act on account of unexplained cash credits appearing in multiple bank accounts maintained by the assessee.
For Assessment Year 2010-11, the assessee had filed a return declaring income of Rs. 2,50,520. Information was received from the ADIT (Investigation), Surat that the assessee maintained five ICICI Bank accounts in the names of proprietary concerns, with total credits of Rs. 3,22,46,830 during the relevant year. During investigation, the assessee was reportedly not traceable and summons remained unserved with remarks “Party Left.” The investigation wing observed that the assessee prima facie appeared to be engaged in cheque discounting business, though no corroborative evidence was found during inquiry.
The case was reopened and assessment proceedings were conducted under Sections 144 read with 147 of the Income-tax Act because the assessee did not comply with notices issued during assessment proceedings. The Assessing Officer completed the assessment by adding Rs. 3,16,45,470 as unexplained cash credits and assessed total income at Rs. 3,18,95,990.
