ITA No 523 of 2024 Madhavapeddy Sudhakar

Parties Involved

Facts Summary

The Assessing Officer upon verifying individual transaction details against the PAN of the assessee for the financial year 2012-13, relevant to A.Y 2013-14, noticed that the assessee has made cash deposits of Rs.53,31,630/- in his Savings Bank Account held with Punjab National Bank. Upon verification, it was seen that the assessee has not filed the return of income for the A.Y 2011-12. Therefore, the assessment has been reopened u/s 147 of the I.T. Act, 1961 and notice u/s 148 of the Act dated 27/03/2018 has been issued by the Income Tax Officer Ward 12(2) Hyderabad. In response to the 148 notice, there was no compliance from the assessee. Subsequently, notice u/s 142(1) dated 1/11/2018 was issued and posted the case for hearing on 9/11/2018. The assessee appeared before the Assessing Officer and filed a letter stating that his wife is into business and he has to file his return of income for himself and for his wife and therefore, requested to transfer the case to Income Tax Officer Ward 13(3) Hyderabad. Accordingly, the assessment records have been transferred to Income Tax Officer Ward 13(3) Hyderabad. The case was taken up for scrutiny and during the course of assessment proceedings, the Assessing Officer noticed that there is a total credits in his bank account including cash deposits to the tune of Rs.79,65,164/-. The Assessing Officer called upon the assessee to explain credits found in his bank account. In response, the assessee submitted that the bank account held wi…

Legal Issues

• 1. Validity of reopening of assessment u/s 147 of the I.T. Act, 1961
• 2. Addition made towards credits found in bank account

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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