The Tax Publishers2023 TaxPub(DT) 3358 (Visak-Trib)



Md. Ahmed Kader Ali Khan v. ITO

ITA No. 10/VIZ/2020

16 November, 2022

Appellant by: B. Shanti Kumar, Authorized Representative

Respondent by: ON Hari Prasad Rao, Departmental Representative


Duvvuru RL Reddy, J.M.

This appeal is filed by the assessee against the order of Commissioner (Appeals)-2, Visakhapatnam in ITA No. 250/2014-15/ITO/W-5(1)/VSP/2019-20 dated 18-10-2019 for the assessment year (A.Y.) 2010-11.

2. Brief facts of the case are that the assessee is an individual, filed his return of income for the assessment year 2010-11 on 10-8-2010, admitting total income of Rs. 1,76,230. Based on a piece of information received from DDIT (Inv), Unit-III(1), Visakhapatnam vide Letter No. DDIT/UIII( 1)/VSP/132/VPG/2012-13 date 24-7-2012 during the course of post search investigation of the said officer in the case of M/s. Vizag Profiles Group, that the assessee has invested an amount of Rs. 65,00,000 viz., Rs. 21,66,000 for civil works, Rs. 12,60,000 for land and a portion of cash worth Rs. 30,74,000 in Green City Project of Vizag Profiles group during the financial year 2009-10, the assessing officer(AO) reopened the case by issue of notice under section 148. During the course of assessment proceedings, the assessee was asked to produce the books of account, bills/vouchers and other related information for verification. The assessee was also asked to produce the details of investments made for purchase of the house property in Green City of M/s. Vizag Profiles Group. In response, the assessee produced the books of account, bills/vouchers, other related information and also filed a letter stating that the assessee has purchased a flat from VPL Projects (P) Ltd. in the joint names of himself and his wife, Smt. Gowsiya Khan and furnished the sources and supporting documents towards purchase of the house property to the tune of Rs. 47,20,000 and for the remaining amount of Rs. 17,80,000, no evidence was submitted. Accordingly, a show-cause notice was issued to the assessee, as to why the difference amount of Rs. 17,80,000 should not be taxed on such unexplained investment. In response to the show-cause notice, the assessee submitted a letter dated 18-3-2014 and stated as under:


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