SHRI ARVIND KUMAR CHAUDHARY PROP. CHAUDHARY HOSTEL BASTI Vs. COMMISSIONER OF INCOME TAX CIVIL LINES FAIZABAD

JUDGEMENT

(1.) This Income Tax Appeal filed under Section 260-A of Income Tax Act, 1961 (hereinafter referred to as the "Act, 1961") has arisen from judgment and order dated 05.09.2014 passed by Income Tax Appellate Tribunal, Lucknow (hereinafter referred to as the Tribunal) in Income Tax Appeal No. 645 of 2011 relating to assessment year 2005-06.

(2.) Proceedings were initiated against Assessee appellant under Section 148 of Act, 1961 with regard to alleged loan of Rs. 10,00,000/-advanced to one Sri Satya Prakash Jaiswal Proprietor of M/s Akash Trading Co., Malviya Road, Basti. Assessing Authority has held that despite advancement of said loan, same was not recorded in the books of accounts and return was filed without disclosing the same. Assessing Authority issued notice under Section 142(1) on 19.08.2009, on which date learned counsel on behalf of the assessee appeared and requested for adjournment. He was asked to furnish vakalatnama and source of investment of loan of Rs. 10,00,000/-given to Sri Satya Prakash Jaiswal along with documentary evidence to show cause, why the amount may not be treated as undisclosed investment and added to the total income of Assessee. The case was adjourned for 30.09.2009. Thereupon one Sri H. Rahman, Advocate appeared and requested for further adjournment which was granted and case was fixed for 04.11.2009.

(3.) Learned counsel appeared on 04.11.2009 before Accessing Authority and filed reply. Thereafter on the next date fixed i.e 18.11.2009 neither counsel nor Assessee appeared nor any application for adjournment was filed hence Accessing Authority under Section 144(1) of the Act, 1961 completed proceedings and made addition of Rs. 10,00,000/-.