9911796707
TMI Blog2010 (9) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... the judgment and order dated 16.12.2009 passed by the Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur ['the Tribunal'] in ITA No.161/JU/2009 whereby the Tribunal affirmed the judgment and order dated 05.03.2009 passed by the Commissioner of Income Tax (Appeals), Jodhpur ['the CIT(A)'] dismissing the appeal filed against the assessment order dated 03.12.2008 for the assessment year 2006-2007. Put in brief, the relevant background aspects of the matter are that the appellant-assessee, an individual carrying on business in his proprietorship concern and dealing in Mateera seeds, filed a return declaring income of Rs.87,360/- on 08.01.2007. The case was processed under Section 143(1) of the Act, was selected for scrutiny and a notice under Section 143 (2) of the Act was issued to the appellant on 18.06.2007. Despite service, none on behalf of the assessee attended the hearing before the Assessing Officer ['the AO']. The AO gathered that the assessee had deposited in the bank account a sum of Rs.14,13,350/- in cash during the relevant financial year and to ascertain the surce of this cash, the assessee was given repeated notices under Section 142(1) and 143 (2) of the Act but h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equisite details regarding deposits made in the bank account and no new evidence could be suggested in the appellate proceeding. Taking an overall view of the matter, the learned CIT (A) found no reason to interfere. In further appeal before the Tribunal, again, the validity of service of notices was put to question. It was also contended that the peak credit should have been considered instead of addition of the entire amount of deposit. It was further contended that the CIT (A) ought to have allowed additional evidence. After hearing the parties, the Tribunal found the contentions urged on behalf of the appellantassessee devoid of substance. The contention regarding want of service was rejected by the Tribunal while observing thus: "5. We have heard the parties and have carefully perused the material on record. A perusal of the departmental record laid before us reveals that the appellant adopted non-cooperative attitude at assessment stage despite repeated number of notices u/s. 142(1) and 143(2) of the Act having been sent by registered post and also by Speed Post that stand served upon him. Even the last notice dated 21.11.2008 issued u/s. 142(1) and 143(2) of the Act listi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim that the deposits made in his bank account, allegedly, from the sale realization of his goods stood withdrawn and utilized either for making purchases for future sales coming to the same account or re-deposited in cash after making withdrawals there from. In fact, the bank statement reveals that on various dates, cash is deposited at outstations, such as Kanpur, Delhi, Indore, Patiala, Bhuvneshwar, Jalandhar and various other cities spread over in different states and after making the deposits, the amounts are withdrawn either on the same day or immediately on the next day, without establishing any nexus that the same amount has been re-deposited at such outstations on subsequent dates. The assessee's explanation, in fact is contradictory inasmuch as on one hand he says that the amount withdrawn on a particular date stands deposited in the same account while on the other hand, he claims that the amounts deposited at outstations in various cities are the collection from sale proceeds. In this view of the matter, the explanation given by the assessee being untrue cannot be accepted requiring to adopt a peak credit with respect to unexplained credit and debit entries in his bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner of Income-Tax, Madras: 144 ITR 452 and Commissioner of Income Tax Vs. Ranjeet Kumar Sethia: (2005) 198 CTR (Raj) 550. Having given a thoughtful consideration to the submissions made, we are unable to find any substance in this appeal; and we are clearly of opinion that this appeal, being totally bereft of substance, does not merit admission. So far the interpretation as suggested by the learned counsel to Section 144 is concerned, the same has only been noted to be rejected. The suggestion remains squarely contrary to the plain provisions of statute. The scheme of Section 144(1) makes it explicit and evident that upon the person concerned failing to make return, or failing to comply with the terms of notice issued under Section 142 (1) or direction under Section 142 (2A), or failing to comply with the directions of notice under Section 143 (2), the AO shall, after taking into account all the relevant material gathered and after giving the assessee an opportunity of being heard, make the assessment of total income to the best of his judgment. As per the first proviso to Section 144(1), the opportunity is to be given by the AO by serving a notice calling upon the assessee to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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