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TMI Blog2015 (8) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... in the third category cheques deposited by the parties and which are dishonoured by the bank amounted to ₹ 10,00,000. Thus, insofar as the cheques were dishonoured, no element of income could be attributed. In the first and second category of deposits, it could be said that the deposits were in the course of transactions and could be held that some business advantage accrued as such monies were there with the assessee for some considerable time. Hence the contentions of the AR that in the first category materials were supplied and in the second category the parties got back the monies deposited and as such no business advantage accrued is not tenable. It is an undisputed fact that cash deposits were available to the assessee for c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s u/s. 68 of the Income Tax Act, 1961. 3. Before the CIT(A), the assessee filed written submissions and also additional evidence. The assessee contended that during the course of assessment proceedings the account copy of ING Vysya Bank was called for and the same was submitted by him. With regard to the sources for cash deposits in ING Vysya Bank and also details of transaction made through ING Vysya Bank, the Assessee has contended before the Assessing Officer that he being the transport contractor, to retain his regular transport customers, he has allowed his customers to carry on bitumen purchase through his on line ING Vysya Bank account. He stated that the cash is deposited by customers in ING Vysya Bank account and those funds wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alf and as the deposited money does not belong to the Assessee. 5. The assessee contended that even if it is presumed that the Assessee has made trading business from out of the cash deposits by customers, only a reasonable estimate has to' be made from out of the turnover of bank account and the total addition of deposits made by Assessing Officer is unjust and unwarranted. The Assessee further contended that even the peak credit is considered in the bank account, the peak credit is only ₹ 5,05,127 and pleaded that the addition of total deposits is unjust. 6. The CIT(A) held as follows: In the course of appellate proceedings, a remand report was called for and a copy of the same was given to the assessee for his rejoind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. We heard both parties. The additional evidence along with written submissions was forwarded to the Assessing Officer for his comments, which were received on 09/06/2011. 8. We find that the assessing Officer has verified all the deposits amounting to ₹ 77,08,000 made during the year in the account duly calling for the required information and explanations. The learned assessing officer has classified total deposits into three categories. 1. Deposits made by the parties and for which they have got supply of material ₹ 55,83,000 2. Deposits made by the parties and for which they have got the money back ₹ 11,25,000 3. Che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be supplied due to non availability of trucks. The Assessing Officer made a comment that the assessee could not substantiate claim of returning of money to the persons. The assessee submitted that the persons who have given amount themselves have deposed that they have got back the money and the assessee submitted that there can be no more authentications other than the depositions from the persons who have got back the money. Hence expectation of further substantiations is unjust and unwarranted. The assessee submitted that regarding the amounts relating to cheques returned amounting to ₹ 10,00,000, the Assessing Officer himself categorically accepted the relief has to be given as the amounts are not realized in the account of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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