NATESAN KRISHNAMURTHY Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This appeal by the appellant filed under Sec. 260A of the Income Act, 1961 (the Act for brevity) is directed against the order of the Income-tax Appellate Tribunal, "B" Bench, Chennai, dtd. 20/6/2018, passed in I.T.A.No.1672/CHNY/2017 for the assessment year 2013-14.

(2.) The appeal has been filed raising the following substantial questions of law:-

(3.) The asseessee, an individual, filed his return of income for the assessment year under consideration (2013-14) on 30/11/2014 admitting a total income of Rs. 9,23,600.00. The case was selected for scrutiny and notice under Sec. 143(2) of the Act was issued on 2/9/2014. On 31/3/2015, the assessee filed a revised return of income without any change in the total income admitted in his original return dtd. 30/11/2014. The assessee was called upon to furnish a copy of return of income, financial statements, books of accounts, etc. In response to the same, the assessee through his authorized representative filed the copy of the return, financial statements, audit report, bank statement and a copy of 26AS statement. The Assessing Officer observed that the assessee had purchased gold jewellery worth Rs. 34.68 Crores by way of cash in the auction conducted by M/s.Manapuram Finance Ltd. In the original e-return filed by the assessee, he had admitted Rs. 6,66,134.00 as sales/gross receipts in the P&L Account, whereas in the revised e-return filed by the assessee, he had admitted Rs. 34,74,81,586.00 as sales/gross receipts in the P & Rs. Account for the financial year 2012-13 relevant to the assessment year 2013-14 (year under consideration). The assessee was asked to clarify as to how such huge purchase could be done when the source admitted in the return of income, i.e. capital of the assessee and sundry creditors were at Rs. 22,67,797/- and Rs. 20,00,000/-. The assessess stated that a group of bidders formed a syndicate and participated in the auction and after successful bidding, money from the prospective purchasers are collected and the same is remitted to M/s.Manapuram Finance Ltd. and on this transaction, the Finance Company collected 1% tax at source. The assessee further submitted that the Company had received only a document in support of his claim.