Deletion of the addition made by the AO and sustained by the CIT(A).

The Income Tax Appellate Tribunal (ITAT) in Bangalore has ruled on an appeal concerning the Assessment Year 2010-11. The core issue was an addition of Rs. 29 lakhs made by the Assessing Officer (AO) and upheld by the Commissioner of Income Tax (Appeals) [CIT(A)]. The AO had treated a sum deposited into the assessee's bank account as income from undisclosed sources. The appeal was filed by the assessee, M/s Suraj Stones Corporation Ltd., against the CIT(A)'s order.

IN THE INCOME TAX APPELLATE TRIBUNAL
“SMC-C” BANGALORE BENCH

BEFORE SHRI N.V VASUDEVAN, VICE-PRESIDENT

ITA No.52/Bang/2020
Assessment Year : 2010-11

M/s. Suraj Stones Corporation Ltd.,
Survey No.29, Behind Plot No.81E/2,
Road No.8, 1st Phase,
Near Anekal Taluk,
Bengaluru – 562 106.
PAN : AACCS 9674 F
Appellant 

Vs. 

Income Tax Officer,
Ward –6(1)(4),
Bengaluru.
Respondent

Assessee by : Shri. V. Srinivasan, Advocate
Revenue by : Shri. Ganesh R. Ghale, Jr. Standing Counsel

Date of hearing : 16.02.2021
Date of Pronouncement : 18.02.2021

O R D E R

PER SHRI N.V VASUDEVAN, VICE-PRESIDENT :

This is an appeal of the assessee against the order dated 27.08.2019 of CIT(A)-6, Bengaluru, relating to Assessment Year 2010-11.

2. The only issue that arises for consideration in this appeal which was pressed foradjudication is the addition of Rs.29 lakhs made by the AO being money deposited in the bank account of the assessee which was treated by the AO as income from  undisclosed sources.

3. The assessee is a company engaged in real estate business. For AssessmentYear 2010-11, proceedings under section 147 of the Income Tax Act, 1961(hereinafter called ‘the Act’) were initiated against the assessee by issue of noticeunder section 148 of the Act. Proceedings were initiated on the basis of the details received from ITO (Investigation Wing-4, Kolkata) which was as under:

“During the financial year 2009-10 relevant to the Assessment Year 2010-11assessee M/s Suraj Stone Corporation Ltd had made cash transaction in total ofRs. 19,00,000/- with M/s Sherawali Corporation of Rs. 5,00,000/- and M/sVenkata Industries of Rs. 14,00,000/-. The assessee company had filed NilReturn of Income and had claimed Refund of Rs. 1,59,860/-.”

To know more in details find the attachment file