Opportunity to explain source after non responding to subsequent notices by AO

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Facts, in brief, as per relevant orders are that return declaring income of ``1,12,277/- beside agricultural income of ``1,05,000/-,filed on 9th July, 2007 by the assessee, was selected for scrutiny with the service of a notice u/s 143(2) of the Income-tax Act, 1961 (hereinafter referred to as the Act) issued on 23.07.2008. In this case, AIR information was received that the assessee deposited a sum of ``11 lacs in his saving bank account with Bank of Baroda, Shalimar Bagh, West Branch, Delhi. In response to the aforesaid notice u/s 143(2) of the Act issued on 23.07.2008 at the Kapurthala address given on PAN card, none responded. In response to a subsequent notice issued on 25th August, 2008 at Rohini address, the assessee appeared before the Assessing Officer[AO in short] on 5th September, 2008,when he was requested to file copy of bank statement of all accounts held by him during the previous year, statement of affairs as on 31.3.2006 and 31.3.2007 and history of the assessee along with details of his family and business & the case was adjourned to 22.09.2008. On the adjourned date, no compliance was made by the assessee. Even the subsequent notice dated 5th June, 2009 issued u/s 143(2) of the Act was returned by the postal authorities with the remarks ‘premises locked’. Another notice sent on 9th October, 2009 was also returned by the ‘postal authorities with the remarks ‘ left’. In these circumstances, the AO obtained a copy of bank statement of the assessee u/s 133(6) of the Act from the Bank of Baroda, Shalimar Bagh Branch, Delhi. Thereafter, though the AO issued three notices to the assessee u/s 143(2) of the Act on 06.11.2009 at assessee’s addresses viz.. 353, Basti Gujra, Jullunder City, Punjab; WZ-8A, Kirti Nagar, New Delhi and village Pondoori Rajputhan, PS Bholath, District Kapurthala, Punjab, requiring his presence on 16.11.2009. However, notice sent to Jullunder & Kirti Nagar,Delhi, were returned unserved by the postal authorities. In these circumstances, when the assessee did not explain the source of cash deposited in his bank account with the Bank of Baroda, the AO proceeded to complete the assessment ex parte u/s 144 of the Act by treating the aforesaid cash amounting to ``11 lacs as unexplained deposit and added u/s 68 of the Act.

Citation :
Kuldeep Singh Ghotra A-3/14-15, Sector -11, Rohini, New Delhi [PAN: AYZPS 1699 E ] (Appellant) V/s.Income-tax Of f icer, Ward 21(4),New Delhi (Respondent)