The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) upheld the addition made on account of cash deposited in the bank account due to failure to explain the source.
Indra Sharma, the taxpayer filed return for the Assessment Year 2014-15 at an income of Rs. 5,45,930/-, the assessment was completed under Section 144 of the Income Tax Act,1961 by making addition of Rs 69,67,000/- under Section 69 of the Income Tax Act on account of cash deposited in the bank accounts.
Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax (Appeal) (CIT(A)) who dismissed the appeal of assessee. Hence, the assessee filed a second appeal before the tribunal.
During the hearing before the tribunal no one was appeared for the assessee.
The counsel for the department representative argued that assessee could not produce any documents and sources regarding the cash deposit before them.
The tribunal determined that assessee who has failed to appear before the A.O. After filing the present Appeal has not appeared on even a single occasion and produced any document to refute the findings of the CIT(A).
Thus, the assessee failed to give any explanation regarding cash found to be credited in the bank accounts of the Assessee.
After reviewing the facts and submissions, the two member bench of the tribunal comprising Dr. B. R. R. Kumar (Accountant Member) and Yogesh Kumar U.S (Judicial Member) upheld the addition made by the Assessing officer due to failure to explain the source cash deposited in the bank .
Thus, the bench dismissed the appeal filed by the assessee.
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