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TMI Blog2021 (1) TMI 838X X X X Extracts X X X X X X X X Extracts X X X X ..... er affording reasonable opportunity for hearing. Appeal filed by the assessee is allowed for statistical purposes. - ITA No.1249/Bang/2019 - - - Dated:- 20-1-2021 - Shri George George K, Judicial Member For the Appellant : Sri.Ravishankar, Adovcate For the Respondent : Sri.Ganesh R.Ghale, Standing Counsel ORDER This appeal at the instance of the assessee is directed against CIT(A) s order dated 29.03.2019. The relevant assessment year is 2015-2016. 2. The solitary issue raised is regarding the addition of ₹ 10,83,000 being cash deposits in the assessee s bank account. 3. The brief facts of the case are as follow: The Assessing Officer vide order dated 11.12.2017 passed u/s 143(3) of the I.T.Act, had made an addition of ₹ 10,83,000 u/s 69A of the I.T.Act. The relevant observations of the A.O. in making the said addition are as follow:- 3. Addition on account of cash deposit of ₹ 10,00,000 with Shri Vijaymahantesh Co-op bank and Ilkal Urban Co-op Bank Ltd:- As discussed above, the assessment has been selected for scrutiny under CASS to examine the as to whether the cash deposits has been made from disclosed sources. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statement of affairs as on 31.3.2014 wherein, opening capital balance has been shown at ₹ 41,97,331. However, the said opening capital balance is without any supporting. The assessee has not filed returns of income prior to A. Y, 2015-16 which is also filed only on 31.3.2017 belatedly. The assessee was asked to furnish cash flow statement as on 31.3.2015 but the same was not filed by the assessee. The assessee has maintained various FDs in Ilkal Co-op Bank Ltd and SVM Coop Bank Ltd and has earned interest which was also not considered while computing total income by the assessee. 3.1 On going through the Current Account NO.08143070000289 with Syndicate Bank that the assessee has also deposited cash of ₹ 24,000 ₹ 59,000 on 03.04.2014 and 30.06.2014 respectively. Thus, the assessee has not explained the sources of the cash deposits with this bank also to the tune of ₹ 83,000. Thus, the total cash deposits into bank accounts worked out to ₹ 10,83,000 sources of which were remained to be explained. 3.2 It is also seen from the records that the assessee has not filed any returns of income prior to A.Y. 2015-16 except for A.Y. 2009-10 filed manua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rces of cash in hand and therefore, the explanation of the assessee that he has deposited cash out of cash in hand as on 31.3.2014 is not acceptable. (ii)It is also explained by the assessee that no FD is matured and withdrawn during the year relevant to A.Y. 2015-16. Thus, the funds available are stated to be salary of ₹ 2, 10,000 details of which are not furnished, income under section 44AD of ₹ 2,41,445 stated to be out of retail business but no details viz nature of business, details of purchases and sales etc not furnished except stated in statement of total income retail business receipts ₹ 9,65,780. Thus, these two sources of income cannot be acceptable in view of evidences of having done the retail business and salary certificate from the employer. It is also stated that the assessee apart from working and earning salary of ₹ 2, 10,000, he has earned commission of ₹ 26,567 by way of sale of agricultural produces purchased from farmers and sold to customers. However, no such evidences in support of his activities were furnished. The assessee is a non-filer and filed return of income only after demonetization period in order to cover up his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces are pertaining to that earlier business only. Hence I am not accepting the argument of the assessee which is completely devoid of logic and supporting evidence. Though assessee filed additional submissions stating that the sources of deposits were from earlier capital but no supporting evidence. Link could not be established to show that how after such a long gap of 4 years, without any source of income / taxable income. Assessee was able to meet his personal / family / business or other obligations and still spare the same old capital towards bank deposits. Hence addition made by the A.O. is in accordance with law and the same is confirmed. 5. Aggrieved by the order of the CIT(A), the assessee has filed this appeal before the Tribunal, raising the following grounds:- 1. The order of the learned Commissioner of Income-tax (Appeals) Belagavi, passed under section 250 of the Act in so far as it is against the Appellant is opposed to law, weight of evidence, natural justice, probabilities, facts and circumstances of the Appellant's case. 2. The appellant denies himself liable to be assessed to an income of ₹ 16,58,784/-, against adjusted income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional grounds. The issue raised in the additional grounds is that the CIT(A) ought to have set aside the assessment order since the additions were made under erroneous section, i.e., section 69A of the I.T.Act, which is not applicable in the instant case and addition if at all ought to have been made u/s 68 of the I.T.Act. However, no arguments were made with regard to the additional grounds, hence, the same are not adjudicated. 7. The learned AR submitted that the assessee was engaged in the business of liquor up to assessment year 2011-2012. It was submitted that up to assessment year 2010-2011, the assessee had filed return of income and paid taxes under the provisions of presumptive taxation u/s 44AD of the I.T.Act. It was stated that the business of the assessee had closed down due to unforeseen circumstances and there was no taxable income for assessment year 2012-2013 to 2014-2015. It was submitted that there were cash withdrawals amounting to ₹ 2,85,000 on 10.05.2014, which were not telescoped / given credit for the cash deposits made, which is patently illegal. Further, it was submitted that there were cash balances as on 31.03.2014 amounting to ₹ 7,48,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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