2022 (12) TMI 220 - AT - Income Tax

Unexplained cash deposit u/s 68 - As per CIT unexplained cash credit as sustained - HELD THAT - As carefully gone through the assessment order, remand report, assessee s rejoinder in objecting the findings of the Assessing Officer submitted before the ld. CIT(A) as well as observations of the ld. CIT(A) and find no reason to interfere with the order passed by the ld. CIT(A). Accordingly, the grounds raised by the assessee are dismissed.

Summary

Issues:
Appeal against order of ld. Commissioner of Income Tax (Appeals) for assessment year 2011-12.

Analysis:
The appeal was filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals) for the assessment year 2011-12. The case was selected for scrutiny, and the Assessing Officer completed the assessment under section 143(3) of the Income Tax Act, 1961. The total income of the assessee was assessed at &8377;67,29,846, with additions made towards unexplained cash deposits and disallowance of depreciation. On appeal, the ld. CIT(A) confirmed the addition to the extent of &8377;29,61,000 against the total addition made by the Assessing Officer. The assessee then appealed to the Tribunal.

During the Tribunal hearing, the assessee did not appear, despite multiple adjournments. The Tribunal proceeded to decide the appeal on merits after hearing the ld. DR. The Tribunal examined the materials on record, including the orders of the authorities below. The assessee had furnished various details before the ld. CIT(A) against the addition made under section 68 of the Act. The Assessing Officer had called for a remand report due to the details not being furnished before them.

The remand report highlighted various cash deposits and their sources, with discrepancies noted in the explanations provided by the assessee. The ld. CIT(A) considered the submissions of the assessee and the remand report, ultimately sustaining the unexplained cash credit amounting to &8377;29,61,000. The Tribunal carefully reviewed the assessment order, remand report, and the assessee's rejoinder, finding no reason to interfere with the ld. CIT(A)'s decision. Consequently, the grounds raised by the assessee were dismissed, and the appeal was ultimately dismissed by the Tribunal.

In conclusion, the Tribunal upheld the decision of the ld. CIT(A) regarding the unexplained cash credit amount, leading to the dismissal of the appeal filed by the assessee for the assessment year 2011-12.