Appeal filed against undisclosed income found as investment made in FD's by the assessee

Last updated: 18 May 2021

Save Share

Quick Summary

An appeal was filed against an income tax addition of £8,04,000. This sum was deemed undisclosed income because the assessee could not explain Fixed Deposits made with Bapunagar Mahila Co. Op. Bank. The Assessing Officer made the addition after the assessee failed to respond to notices. The appeal to the CIT(A) was dismissed due to a significant delay in filing.

Court :
ITAT Ahmedabad

Brief :
The instant appeal filed by the assessee is directed against the order dated 26.12.2018 passed by the Commissioner of Income Tax (Appeals) – 10, Ahmedabad arising out of the order dated 05.12.2016 passed by the ITO, Ward-2(2)(1), Ahmedabad under Section 147 r.w.s 144 of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) for Assessment Year 2009-10.

Citation :
I.T.A. No.287/Ahd/2019

IN THE INCOME TAX APPELLATE TRIBUNAL
“SMC” BENCH, AHMEDABAD
(CONDUCTED THROUGH VIRTUAL COURT)

BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER &

Ms. MADHUMITA ROY, JUDICIAL MEMBER

I.T.A. No.287/Ahd/2019
(Assessment Year: 2009-10)

Devabhai Dhanabhai Desai
28/326, Hariom Apartment,
Nava Wadaj, Ahmedabad380013
PAN No.AKFPD8443D
(Appellant)

Vs.

ITO
Ward-2(2)(1)
Ahmedabad
(Respondent)

Appellant by : Shri S. N. Divatia, AR
Respondent by: Shri S. S. Shukla, Sr. DR

Date of Hearing 20.04.2021PER Ms. MADHUMITA ROY - JM:
Date of Pronouncement 27.04.2021

O R D E R

The instant appeal filed by the assessee is directed against the order dated 26.12.2018 passed by the Commissioner of Income Tax (Appeals) – 10, Ahmedabad arising out of the order dated 05.12.2016 passed by the ITO, Ward-2(2)(1), Ahmedabad under Section 147 r.w.s 144 of the Income Tax Act, 1961 (hereinafter referred as to ‘the Act’) for Assessment Year 2009-10.

2. The matter relates to addition of Rs. 8,04,000/- on account of undisclosed income on the basis of the finding that the assessee made F.Ds. in account number – 2009 totaling to Rs. 8,04,000/- maintained with the

Bapunagar Mahila Co. Op. Bank Ltd. which was failed to be explained by the assessee.

3. We have heard the parties and perused the relevant materials available on record.

It appears that the Ld. AO made addition in the absence of any submission made by the assessee in response to the notice under Section 142(1) dated 13.07.2016 and a further show cause notice dated 21.11.2016.

4. The Ld. CIT(A) dismissed the appeal on the ground of limitation since there were 137 days delay in filing the said appeal before him. The following submission was made by the assessee before the Ld. CIT(A) is as follows:-

To more in details find the attachment file

FAQ :

The main issue was the addition of £8,04,000 as undisclosed income due to the assessee's failure to explain Fixed Deposits made with Bapunagar Mahila Co. Op. Bank.

The income was added because the assessee could not provide an explanation for the Fixed Deposits totalling £8,04,000 when requested by the Assessing Officer.

The Assessing Officer made the addition in the absence of any submission from the assessee in response to notices issued under Section 142(1) and a show cause notice.

The appeal before the Commissioner of Income Tax (Appeals) was dismissed on the grounds of limitation, as there was a 137-day delay in filing the appeal.