Multiple Surnames in KYC of Taxpayer: ITAT upholds SCN issued for Unexplained Cash Deposits [Read Order]

The Income Tax Appellate Tribunal (ITAT),Panaji Bench, upheld the issuance of show cause notice (SCN) for unexplained cash deposits upon noting that the taxpayer in question had multiple surnames in the Know Your Customer (KYC) document.

Also Read: Relief to Louis Vuitton India: ITAT Remands issue of Bonus Disallowance u/s 43B Paid Before Due Date

The appellant/assessee, Sonal Sunil Jolapure, was alleged to have escaped the assessment of income and thus notice was issued under Section 148 of the Income Tax Act, 1961. Notices were also issued under Sections 143(2) and 142(1). After some deliberations before the Additional Commissioner of Income Tax (CIT) and CIT (Appeals), another show cause notice was issued on 05.10.2018.

It was submitted that the earlier submissions are without the knowledge of the appellant and requested withdrawal of authorisation of previous Authorized Representative (AR). The Assessing Officer noted that the branch manager of the VPK Urban Credit Cooperative Society, from where deposits were made, had concluded that the assessee failed to explain the source of income and is known by two names.

Before the ITAT, it was argued that the notice under Section 148 was improper as the assessee was not the same person on whom the notice was issued. However, VPK Urban Credit Cooperative Society assured that the deposits were found in respect of the assessee.

The same was evidenced by the specimen signature in the society and the KYC where Sonal Sunil Jain was signed in the former and Sonal Sunil Jolapura was written in the latter. ITAT opined that the assessee had failed to explain the source of deposits.

ITAT took into consideration the PAN identification details and passport details to confirm the old and new surnames of the assessee/appellant and observed that the notices issued are on the same person. The bench of GD Padmahshali (Accountant Member) and Pavan Kumar Gadale (Judicial Member), therefore, found no merit in the grounds of appeal and upheld the validity of the SCN issued against the assessee.

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