Unexplained money u/s 69A of the Income Tax Act

IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD ‘B’ BENCH : Hyderabad
(Through Video Conference)
Before Smt. P. Madhavi Devi, Judicial Member
And
Shri A. Mohan Alankamony, Accountant Member
ITA No. 524/Hyd./2020
Assessment Year: 2017-18

Sri Krishna Sri Ram vs. ITO, Ward 13(4)
Hyderabad Hyderabad
[PAN: ANTPS6530M]

For Assessee: Sri Harsha, Adv.
For Revenue: Sh. Rohit Mujumdar, D.R
Date of Hearing : 08/07/2021
Date of Pronouncement : 13/09/2021
O R D E R

Brief facts of the case are that the assessee is an individual and is the retired Dy. Director (IES) with Micro Small and Medium Enterprises (MSME). During the de-monetization period, the assessee has deposited cash of Rs. 10,00,000/- into his bank account no. 10558669824 with SBI, Balanagar branch during the FY 2016-17 relevant to the A.Y 2017-18. Since the assessee did not file his return of income, notice u/s 142(1) of the Income Tax Act, 1961 [the Act] was issued to the assessee requiring the assessee to file his return of income for the relevant A.Y.

2. Appellant submits that for instance, Learned CIT (A) while dealing with submissions challenging additions under Section 68, none of the submissions were considered in true spirit. The Learned CIT (A) has proceeded with a made-up mind that the said amounts were justified to be added under Section 68. Appellant submits that the order passed in such a state has to be quashed and kept aside. Appellant further places reliance on the following judgments, wherein it was held it was fit to remand the matter when the submissions were not considered in entirety.

3. Appellant in light of the above submissions, if at all there is a liability under Section 234A, it would be from the due date for filing the return as a response to the notice under Section 142(1) but not the due date for filing the return under Section 139(1). As stated in facts, since the due date for filing the return in the notice under Section 142(1) is stated to be 31.03.2018, the interest under Section 234A will trigger only after 31.03.2018 and not prior to that. Appellant submits that, if the due date is taken as 31.03.2018 and date of completion of assessment as 07.12.2019, the interest under Section 234A shall be payable only for 20 months (01.04.18 to 07.12.2019) as against 29 months confirmed by the impugned order. Appellant submits that if the period of 20 months is considered, the interest liability shall be to the tune of Rs 1,55,034/- and accordingly prayed for consideration of the same towards interest.

4. In the result, the assessee’s appeal is partly allowed for statistical purposes.
Order pronounced in Open Court on 13/09/2021.

Please find attached the enclosed file for the full judgement