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TMI Blog2011 (11) TMI 870X X X X Extracts X X X X X X X X Extracts X X X X ..... 11 admitting a total income of ₹.1,71,541/-. The case of the assessee was selected for scrutiny and after following due procedure, the Assessing Officer has completed the assessment under section 143(3) of the Income Tax Act, 1961 [ Act in short] dated 27.03.2014 assessing total income of the assessee at ₹.2,19,20,740/- by making addition of cash deposits of ₹.2,17,49,200/- as income from undisclosed sources. On appeal, the ld. CIT(A) has granted partial relief to the extent of ₹.1,26,14,536/- and the balance amount of ₹.91,34,664/- has been sustained on estimate basis. 3. On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has submitted that the details of ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... till date no report is received from the Assessing Officer. The AR of the appellant has submitted details which sing only in one tune and require that tax authorities adopt only limited view that someone gives cheques and someone encashes them without looking at the surrounding circumstances. As neither AO has responded despite reminders and neither the ARs have anything new to say, the case is now disposed off on merits. 5. The AR of the assessee has filed a letter dated 29.02.2016, in which he has tried to make out a case for cash deposits in the account of the assessee. The argument of the AR is that, that cheques have been issued to various parties so that the same are discounted by them from the bank and the cash flow is generate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is discounted is transferred by the other person to the assessee's account and the assessee withdraws money from that account to deposit in the Axis Bank to pass the cheques issued by him. to various parties. Hence, it is clear that the parties have transferred the discounted amount to assessee's account which the assessee has withdrawn and deposited in his account with Axis Bank. Hence it is not true that the parties have withdrawn cash and given it to the assessee. This is clear from the explanation of transactions which we have annexed herewith for your perusal. This trail of transactions is given for about 10 transactions and we have enclosed the assessee's bank account copies along with the bank account statement cop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng purpose and for that I paid cash to Mr. Latheef as given in the annexure enclosed during the financial year 2010-11. I am an assessee having PAN: .................. And they have attached copies of their own bank accounts 8. Earlier letter dated 10/12/2015 is merely repeat of same assertions and photocopies, though in his letter dated 19/09/2014, the AR contends that huge tax demand of Rs.90,06,260/- is bad in law and that the appellant has cooperated with I.T. Department by deposit of tax of Rs. l,50,000/-. Reference is made to the case of Sumati Dayal Vs CIT [214 ITR 80B SC (1995)] which brings about the test of human probability and that evidence has to be seen in the light of expected behavior of a normal person. As has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds of recipients as revenue income a, not been examined by the AO though it may prove to be fertile area for deepening of tax net. Question is not only of bearing high interest rates coming annually to 52% but also of how the loan takers (if it is a loan, that is) are able to return the money. Has there been a final settlement of accounts? And why have other options of availing cheaper credit (from banks/NBFCs) not explored? In all, combined facts and circumstances of this cheque for cash leave one in doubt of basic commercial sense in this whole business. 9. In this light of circumstantial evidence and material on record, 80% of effective interest rate i.e. 42% (52 x 0.8) of gross cash deposited is considered as income of the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X
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