2019 (9) TMI 1263 - AT - Income Tax

Addition u/s 68 - income from unexplained sources - HELD THAT - The assessee failed to explain nature and source of cash deposit in his Bank Account before the authorities below. The assessee for the first time contended before the CIT(A) that he is running a general store shop and cash has been deposited out of the sales made. The explanation of assessee is not supported any documentary evidences. When assessee made purchases out of the same Bank Account as per the contention of Learned Counsel for the Assessee through Banking channel, assessee could have produce purchase bills before the authorities below to show that it was in fact the business transaction of assessee. Assessee did not produce any evidence before the authorities below. Same is the position before the Tribunal that assessee did not produce any purchase bills to show that purchases were made through banking channel out of the same Bank account in which cash have been deposited. Therefore, there were no justification even to remand the matter back to the file of A.O. as is argued by the Learned Counsel for the Assessee. - Decided against assessee.

Summary

Issues:
Challenge to addition of income from unexplained sources under section 68 of the I.T. Act, 1961.

Analysis:

Issue 1: Addition of Income from Unexplained Sources
- The case involved a challenge against the addition of ?15,86,000 on account of income from unexplained sources under section 68 of the I.T. Act, 1961 for the A.Y. 2010-2011.
- The Assessing Officer (A.O.) noted cash deposits in the assessee's bank account during the relevant assessment year, leading to reopening of the case under section 147.
- The assessee failed to cooperate, did not attend hearings, and did not provide explanations or evidence to substantiate the source of cash deposits.
- The A.O. proceeded with reassessment and made the addition, which was later confirmed by the Ld. CIT(A) due to lack of substantiated evidence from the assessee.
- The assessee claimed the cash deposits were from sales made through a general store shop but failed to provide any documentary evidence to support this claim.
- The assessee also failed to produce purchase bills to demonstrate that purchases were made through banking channels from the same bank account where cash deposits were made.
- The Tribunal upheld the decisions of the lower authorities, emphasizing the lack of evidence supporting the assessee's claims and dismissing the appeal.

Conclusion:
The appeal challenging the addition of income from unexplained sources was dismissed by the Tribunal due to the failure of the assessee to provide sufficient evidence to substantiate the source of cash deposits in the bank account. The Tribunal found no justification to interfere with the decisions of the lower authorities in the absence of any supporting documentation or evidence presented by the assessee.