9911796707
TMI Blog2022 (8) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... sue in the present appeal relates to the addition made to the income of the assessee on account of cash deposit remaining unexplained amounting to Rs. 18,66,000/- 2.1 The grounds raised by the assessee in this regard are as under: 1. Ld. CIT(A), Jamnagar has erred in law as well as on facts in confirming addition of Rs. 17,09,490/- u/s. 69A in respect of cash deposits made by an appellant by treating it as unexplained money. 3. Brief facts relating to the case are that the A.O. had information that the assessee had deposited 18,66,000/- in his ICICI Bank account at Porbandar Branch during the impugned year. Accordingly jurisdiction was assumed by the A.O. to reopen the case of the assessee u/s. 148 of the Act and proceedings u/s. 147 co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could be attributed to the turnover of their business. Alternatively the assessee contended that only the peak balance be added. The ld. CIT(A) was not convinced with the explanation of the assessee and upheld the findings of the A.O. that the assessee had been unable to substantiate the source of cash deposits from the turnover of his business. The relevant findings of the Ld. CIT(A) at Para 5 of the order is as under: 5. The order u/s. 143(3) r.w.s. 147 of the Act of the AO as well as written submission of AR of the appellant have been considered. The grounds of appeal of the appellant are reproduced in initial paragraph of this appeal order. The second ground of appeal of the appellant is that the AO has erred in law as well as on fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim of cash sales made of any product. The AO in para 6 of the assessment order u/s. 143(3) r.w.s. 147 of the Act has mentioned that the appellant did not submit any reply in relation to show cause notice dated 28/11/2017. Thus the AO presumed that the appellant was having nothing to say with regard to points raised in the show cause notice. Accordingly the AO made addition of Rs. 17,09,490/-(i.e. cash deposit of Rs. 18,66,000/~ - income of Rs. 1,56,5107- as declared in the return of income) to the total income of the appellant u/s. 69A of the Act on account of unexplained money. The AR of the appellant as per his written submission dated 17/09/2019 has contended that the appellant being smart trader in petty agricultural items, grocery, m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the course of assessment proceedings and also at appellate stage by way of filing relevant details and evidence. The AR of the appellant at appellate stage himself has admitted that books of accounts in the case of appellant were not maintained as the appellant was small trader in petty agricultural items, grocery and milk etc. The AR of the appellant has also admitted the fact that since the matter pertains to financial year 2009-10 and hence bills and voucher for sale and purchase were no preserved. In my opinion in absence of any proof or evidence, the mere submission of the appellant that this amount of deposit of Rs, 18,66,000/- in the bank account were sales cannot be accepted. This is also in view of the fact that during the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . This is also in view of the fact that no any such plea was takers by the appellant before the AO at the time of assessment proceedings despite the Fact that show cause notice dated 28/11/2017 was issue to her by the AO. the AR of the appellant has not furnished any evidence to show that exactly the same amount which were deposited in the bank account were withdrawn and again exactly the same amount were further deposited in the bank account within a very short period. Considering all these facts the above plea of AR of the appellant is not found to be acceptable. In my opinion in view of the facts as mentioned in this paragraph of this appeal order, the AO has correctly made addition of Rs. 17,09,490/- to the total income of the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turnover in cash that too after a lapse of six years. In these peculiar facts and circumstances we are of the view that having accepted the fact that the assessee had conduced business to the tune of Rs. 20 lakhs odd which in all probability was conducted in cash and the department having found out no other source of income available with the assessee, the entire deposits of Rs. 18,66,000/- in cash in the bank can be safely attributed to the business receipts of the assessee only. We may add that very small businessmen like the assessee for whom the law itself provides a convenient method for declaring their incomes by returning taxes on at a presumptive rate, thus doing away with the onerous requirement of maintaining books of account and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
