2022 (3) TMI 64 - AT - Income Tax

Addition u/s 69A - cash deposited into bank accounts - HELD THAT - Assessee failed to explain source of the cash deposits. It was however stated that the aforesaid bank accounts were opened to provide accommodation entries. However CIT(A) held that the assessee failed to substantiate the above contention with any evidence in this respect. So far as the contention of the assessee about the declaration of income of 84010/- made by the assessee u/s. 183 of the Finance Act 2016 and accepted by the Principal Commissioner of Income Tax while deciding this issue the Ld. CIT(A) in his order specifically stated that there was no established nexus between the aforesaid cash deposits and said declaration. Since neither anyone has appeared on behalf of the assessee nor any evidence has been brought on record to substantiate the contention of the assessee we therefore do not find any reason to interfere with the order of the CIT(A). - Decided against assessee.

Summary

Issues:
Appeal against order of Ld. CIT(A)-14, Kolkata for A.Y. 2007-08 - Non-appearance of assessee in Tribunal hearings - Addition of cash deposits under section 69A of Income Tax Act, 1961 - Nexus between cash deposits and income declaration under Finance Act, 2016.

Analysis:
The appeal before the Appellate Tribunal ITAT Kolkata was filed by the assessee against the order of the Ld. CIT(A)-14, Kolkata for the assessment year 2007-08. The Tribunal noted that during various hearings, the assessee did not appear, leading to dismissal of the case for non-appearance. However, the assessee later filed a Miscellaneous Application for restoration of the appeal, which was allowed by the Tribunal. Subsequently, on another hearing date, the assessee again failed to appear or provide any explanation for non-appearance. The Tribunal observed that the assessee's lack of serious interest in pursuing the appeal was evident, citing the principle that preferring an appeal implies actively pursuing it as per legal precedents.

Regarding the grounds of appeal raised by the assessee, the Ld. CIT(A) had confirmed the addition of ?4,20,04,200/- on account of cash deposits into bank accounts under section 69A of the Income Tax Act, 1961. The assessing officer had initiated the addition due to significant cash deposits in the assessee's bank accounts, which were not reflected in the income tax return. The case was reopened under section 147 of the Act as the source of these deposits was unexplained. Despite the assessee's claim that the accounts were opened for accommodation entries, no evidence was provided to substantiate this. The Ld. CIT(A) also found no nexus between the cash deposits and the income declaration made by the assessee under the Finance Act, 2016.

Since the assessee failed to appear or provide any evidence to support their contentions, the Tribunal upheld the order of the CIT(A) confirming the addition of cash deposits. The Tribunal found no grounds to interfere with the CIT(A)'s decision, leading to the dismissal of the appeal. The order was pronounced in open court on 09.02.2022, emphasizing the finality of the decision in the case.