आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM (HYBRID HEARING)

श्री लधलतकु मार, न्याधयक सदस्य एिं श्री एसबालाकृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI LALIET KUMAR, HON’BLE JUDICIAL MEMBER &

SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकरअपीलसं./I.T.A.Nos.496, 497, 498, 499 & 500/VIZ/2024 (निर्धारण वर्ा/ Assessment Years: 2016-17, 2017-18, 2018-19, 2019-20 & 2020-21)

Vemuluri Naga Bhushanam v. DCIT – Central Circle – 1(1)

D.No.8-2-293/82/A/1149 Income Tax Office Road No. 36 Lakshmipuram Main Road Jubilee Hills, Hyderabad – 500033 Guntur – 522006 Telangana Andhra Pradesh [PAN: ABIPV2941A]

(अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

करदाता का प्रतततितित्व/ Assessee Represented by : Shri MV Prasad, AR राजस्व का प्रतततितित्व/ Department Represented by : K. Sandhya Rani, Sr.AR सुिवाई समाप्त होिे की ततति/ Date of Conclusion of Hearing : 20.01.2025 घोर्णध की तधरीख/Date of Pronouncement : 27.02.2025 आदेश /O R D E R PER BENCH:

1. These appeals are filed by the assessee against different orders of Learned Commissioner of Income Tax (Appeals), Visakhapatnam – 3 [hereinafter in short “Ld.CIT(A)”] vide respective DIN & Order No. as stated below:-

2. Since the grounds raised by the assessee for all these appeals are identical in nature, these appeals are clubbed and a consolidated order being passed. We now take up the appeal in ITA No. 496/VIZ/2024 for the A.Y.2016-17 as a lead appeal.

ITA No. 496/VIZ/2024 (A.Y. 2016-17)

3. This appeal is filed by the assessee against order of Ld. CIT(A) vide DIN & Order No. ITBA/APL/S/250/2024-25/1069967018(1) dated 26.10.2024 for the A.Y.2016-17 arising out of order passed under section 153C of the Income Tax Act, 1961 (in short ‘Act’) dated 29.03.2022.

4. Brief facts of the case are that, assessee is an individual engaged in the business of retail sale of readymade garments filed his return of income for the A.Y.2016-17 on 03.12.2016 admitting a total income of Rs. 94,48,040/-. A search and seizure operation was conducted in the case of M/s. Polisetty Somasundaram Group of cases on 28.01.2020. During the course of search and seizure proceedings conducted in the business premises of M/s. Polisetty Somasundaram Group on 28.01.2020, a pen drive was found which was seized vide annexure A/PSS/CORP/19 and the copies of the contents are seized vide annexure A/PSS/CORP/18 which contain the details of unaccounted cash transaction made by M/s. Polisetty Somasundaram. During the course of search proceedings, it was seen that M/s.Polisetty Somasundaram is indulged in giving cash loans to persons and received interest on the above loans in cash. The assessee was one of the close aids to the partners of M/s. Polisetty Somasundaram. Based on the above incriminating material, notice under section 142(1) was issued on 18.01.2022 to the assessee. In response, assessee filed part of the information through e-proceedings in ITBA portal. Later, another notice under section 142(1) of the Act was issued on 14.03.2022 requesting the assessee to furnish details of the nature of cash transactions Vide Annexure A/PSS/CORP/18 at Page No. 160 & 161, for the receipts of Rs. 1,50,00,000/- and payment of Rs. 1,66,47,945/- to M/s.Polisetty Somasundaram. Ld. AO found that in the sworn statement under section 132(4) Mr. P. Shyam Sundhar, Managing Partner of M/s. Polisetty Somasundaram has stated that cash payments made to the assessee are cash loans and the amount received with interest in cash. The submission of the assessee was that he has never entered into any cash transactions with M/s. Polisetty Somasundaram or Shri Polisetty Sri Hari Prasada Rao. However, Ld. AO from the seized materials noticed that the assessee has signed a promissory note in lieu of cash transactions given by M/s. Polisetty Somasundaram for an amount of Rs.1,50,00,000/- which was seized from the business premises of M/s. Polisetty Somasundaram vide Page No. 159 of A/PSS/CORP/09 wh