ITAT rejects Revised Income Tax Return filed by Practicing CA declaring Income from Trading Business, Suspects attempt to cover up Queries on Cash Deposits [Read Order]

The Delhi bench of the Income Tax Appellate Tribunal, on Wednesday rejected a revised return filed by a practicing Chartered Accountant claiming Trading Business as the source of cash deposits made with various bank accounts. The Tribunal bench comprising Accountant Member Mr. N K Billaiyya and Judicial Member Mr. C N Prasad expressed an opinion that the same can be a mere tool to cover up the queries in respect of the cash deposited in various Banks.

The assessee, a Chartered Accountant, was asked to explain the source of cash deposited in the aforementioned bank accounts. In his reply, the assessee accepted that the gross receipts of Rs. 60,02,800/- belong to him and simultaneously submitted a revised return on 18/1/2015. The gross receipts were shown as income from trading business of Grey Fabrics. According to the assessee, the reasons for revising the return was mentioned as to buy peace and avoid litigation with the Income Tax Department in pursuance of AIR Information.

However, the A.O dismissed the revised return as invalid return and did not accept the claim of business for want of evidences.

Upholding the decision of the lower authorities, the two-member bench has observed that the assessee is a practicing Chartered Accountant and is, therefore, barred from doing any business.

“Only under certain circumstances, the governing body ICAI permits a practicing Chartered Accountant to do business. However, no such evidence was brought on record. The assessee has been harping upon the revised return which is in-fact an in valid return. Further, even before us the assessee has not brought on record any demonstrative evidence to justify his business activities. There is no evidence of any VAT, GST or permission from Municipality. Nor there are any evidences in respect of purchases/ sales of Gray Fabrics,” the bench said.

“It appears that the revised return was filed only to cover up the queries raised during the assessment proceedings in respect of cash found to be deposited in various bank accounts,” the bench added.

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.