9911796707
TMI Blog2015 (6) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... th the order of assessment, the petitioner filed an appeal before the CIT (A)-VI Hyderabad. The said appeal was disposed of vide order in Appeal No.282/2011-12(CIT(A)-VI dated 20.11.2013. The representation of matter before the CIT (A) was entrusted to an Advocate. The appellate order was served on the said Advocate on 4.1.2014. The receipt of the appellate order was not in the knowledge of the petitioner. However, when the TRO issued notice u/s 226(3) of the I.T. Act on 4.6.2014, he came to understand through Tax Recovery Officer that the appeal was already decided by the ld CIT (A). There was no advice from the Advocate as to the further course of action against the order of the ld CIT (A) and information regarding the date when such order was served on him. The date of service of the order of the CIT (A) was to be ascertained from the office of the CIT (A). When the petitioner came to know the matter through the notices of the TRO, he decided to change the Counsel. There was a delay on the part of the Advocate in returning the files to the petitioner. The files were returned to the petitioner in the last week of June, 2014. The petitioner, thereafter consulted another Advocate i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ental income and the pass books for agricultural lands. Subsequently, a revised remand report was furnished indicating the contents/entries of one more bank account (Vijaya Bank, Sahebnagar Branch) which was not shown to the department, wherein the total credits were quantified at Rs. 8,80,668/- including the cash deposits of Rs. 94,000. 8. While furnishing the remand report, AO observed that the assessee has shown gross receipts from the business of tent house, shown at increased amount of Rs. 12,29,026 in the revised computation, as against Rs. 7,11,026 shown in the original return of income. Further, as per 26AS, the rental receipts are shown at Rs. 13,28,016 as against Rs. 10,07,114 shown in the return of income, which means the assessee has understated the rental receipts by Rs. 3,20,902 which was further observed to be considered as undisclosed income under the head "income from house property". Regarding the rental receipts, it was further observed that no such receipts were deposited into Andhra Bank account, while an amount of Rs. 2,46,208 were credited by way of cheque, representing the rental receipts, into the Vijaya Bank account. It was pointed out in the revised repo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jaya Bank instead of directing that amount of Rs. 2,46,208 is to be deleted by the AO after verification of the credits. It was also submitted that the CIT (A) erred in directing the AO to verify the addition of Rs. 3,20,902 in Andhra Bank. 12. It was also submitted by the ld Counsel for the assessee that an amount of Rs. 25,73,902 which has been deposited on various dates in Andhra Bank account are not taxable amount, because the amount of Rs. 25,73,902 is cash on hand as per the books of accounts and includes the income which has been earned for the financial year 2008-09 and earlier years. The assessee also enclosed his cash book and bank statements which indicate that the amount of Rs. 25,73,902 is cash rotated through business. It was therefore, argued that the addition of Rs. 5,69,121 and Rs. 5,18,000 representing the credits into the Andhra Bank account have been confirmed by the CIT (A) without considering the explanations offered by the assessee. 13. The ld DR raised no objection for the matter to be sent back to the file of the CIT (A) to verify the deposits/withdrawals in Vijaya Bank. 14. In these circumstances, since the AO has verified only one account namely Andhra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner humbly submits that the delay is for the reasons submitted above which are beyond the control of the petitioner and is not intentional. The petitioner, therefore, requests the Hon'ble ITAT to kindly condone the delay and pass appropriate orders in the matter". 17. We find the reasons for the delay in filing the appeal are genuine and hence condone the delay. 18. Briefly stated, the assessee is an agriculturist and is working as a Real Estate Agent. He is also earning income from business profits apart from income from property and agricultural income. AO observed that an amount of Rs. 37,79,001 was deposited in cash into SB account with ICICI Bank on various dates. In the absence of any compliance to the notices issued and any explanation from the assessee regarding the cash credits, AO treated the same as unexplained credit u/s 144 of the I.T. Act. 19. Assessee objected to the ex parte order and the addition holding that he was not provided with an opportunity of being heard. It was further submitted that the deposits into the ICICI Bank account were explainable through various sources such as rents, business receipts, loans etc. 20. As the information furnis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he remand reports, assessee submitted that during the year an amount of Rs. 3,71,550 was earned as commission in real estate business in which the receipts were both in cash and cheques, without involving in purchase and sale of any properties. 22. The CIT (A) after discussing elaborately at para Nos. 5.4 and 5.5 of his order concluded as follows: ".................Thus, the additions on account of unexplained investments, being the credits into the two bank accounts standing in the name of appellant during the year, stand quantified on the basis of sources of credits of Rs. 43,05,776 in ICICI Bank account and Rs. 16,98,100 in Vijaya Bank Account vis- à-vis the total explainable sources of Rs. 16,39,548 into ICICI Bank and Rs. 2,46,208 into Vijaya Bank subject to further verification. Further, the difference in business receipts as per the return of income and revised computation which is to the extent of Rs. 7,17,500 represent the unexplained income/ investment, as the appellant failed to explain the sources for such amounts. Thus, the additions stand confirmed at Rs. 26,66,228 in addition to the amount of Rs. 7,17,500 being the credits into ICICI Bank. Similarly credits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of Rs. 37,79,001 is cash rotated through business. It was therefore, argued that the addition of Rs. 26,66,228 representing the credits into the ICICI Bank account have been confirmed by the CIT (A) without considering the explanations offered by the assessee. Further it was submitted that the assessee owns agricultural land of 5 acres and his wife owns 7 acres which is income earning. 25. The ld DR raised no objection, for the matter to be sent back to the file of the CIT (A) to verify the deposits/withdrawals in Vijaya Bank. 26. In these circumstances, since the AO has verified only one account namely ICICI Bank and has passed the assessment order u/s 144 as ex-parte order and also that the assessee has informed about the Vijaya Bank a/c only before the CIT (A), we are of the opinion that the matter should be remitted back to the file of the AO to verify the bank accounts. Since the assessee has provided copy of the bank statements with ICICI Bank and Vijaya Bank and in form No.26AS for the A.Y 2009-10 in the paper book. AO shall verify the same and decide the issue in accordance with law. 27. In the result, appeal in ITA No.1313/Hyd/2014 is allowed for statistical ..... X X X X Extracts X X X X X X X X Extracts X X X X
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