| The Tax Publishers2020 TaxPub(DT) 1627 (Ahd-Trib) INCOME TAX ACT, 1961
Section 69
Assessee had not brought anything on record that assessee had deposited cash in bank account in the capacity of Karta of HUF which had escaped assessment for the assessment years 2006-07 and 2007-08. Thus, in the absence of such information, it was transpired that the orders of AO for the assessment years 2006-07 and 2007-08 had reached to its finality and it was concluded that the bank account opened in the capacity of Karta belonged to assessee only.
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Income from undisclosed sources - Addition under section 69 - Opened bank account belonged to assessee as Karta or not -
Assessee was an individual engaged in the business of trading of tailoring materials. Assessee during the assessment proceedings, claimed to be acting as Karta of its HUF which was holding the CC bank account with Commercial Co-operative Bank Ltd. Accordingly, assessee contended that the amount of cash deposits in such CC account did not belong to him. As per the assessee, such bank account was opened by him in the capacity of Karta of HUF in the year 2000 to extend the help to one of the members of the HUF, namely, Smt. A proprietor of Darshan Traders. Therefore, the transactions, including the deposit of cash belonged to the Member of the HUF. AO held that the account belongs to assessee as confirmed by the bank that such CC account was opened in the name of assessee. Furthermore, for opening the bank account the PAN and the driving license of the assessee was furnished to the commercial bank. But, it was admitted that impugned account had been used for the business transactions carried out by the member of HUF. Accordingly, AO had treated the balance amount of Rs. 9,56,477 (Rs. 13,08,670 cash deposited minus the transactions carried out by the member HUF amounting to Rs. 3,52,193) belonging to assessee as unaccounted investments under section 69. Held: The cases of assessee were reopened by AO under section 148 for the assessment years 2006-07 and 2007-08 on the reasoning that assessee had deposited cash in the impugned bank account which had escaped assessment. AO accordingly made the addition to the total income of assessee in the respective assessment years. Assessee had not brought anything on record suggesting that the impugned addition made by AO for the assessment years 2006-07 and 2007-08 had been challenged before the higher forum. Thus, in the absence of such information, it was transpired that the orders of AO for the assessment years 2006-07 and 2007-08 had reached to its finality. Thus, it was concluded that the impugned bank account belonged to assessee.
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 69
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