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TMI Blog2024 (3) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... ibuting cash deposited in the same to him, which actually never belonged to the assessee, and despite this fact having been pointed out to him in the remand proceedings and the same remaining uncontroverted by the AO, CIT(A) still goes on to treat the cash deposited as the income of the assessee. When the assessee had fairly revealed the correct bank account belonging to him, and had come out clean that the cash deposits in his actual bank account, it is a glaring case of totally ignoring the facts pointed out by the assessee, and passing order in appellate proceedings in an arbitrary manner. Besides this, we have also noted that the assessee had stated the cash deposited in bank account as pertained to his turnover of his business, and had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earing together and are being disposed of by this consolidated order. ITA No.886/Ahd/2023 for A.Y.2010-11 is taken as a lead case, and our decision in this appeal will apply mutatis mutandis to other appeal also. 3. ITA No.886/Ahd/2023 : Assesses appeal A.Y 2010-11 4. Grounds raised in the appeal are as under: 1. The Appellant is an Individual having Permanent Account Number ANLPP7193F and engaged in the business of trading in scrap tyres and tubes. The Appellant has been engaged in the business since more than 15 years and operates from Vadodara, Gujarat. 2. The Appellant received a notice for reopening of assessment proceedings u/s. 148 of the Act on 17.03.2017 i.e. beyond a period of 4 years and as per the provisions of Section 149(l)(b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k should be read as ICICI Bank. It may be mentioned that the fact that details were required for the deposits made to the ICICI Bank Ltd. Was known the Appellant for the first time at the time of receipt of the rectification order. During the entire assessment proceedings, it was duly stated that details for the cash deposits to Axis Bank were to be submitted. The Appellant could not submit the details of the bank account which were not directed to be submitted. The entire fact was brought on record for the first time after the closure of assessment proceedings through rectification order. 5. Subsequently, the Appellant filed an appeal with the learned Commissioner of Income Tax (Appeals) [ the CIT(A) ] on 15.1 1.2017 in Form 35. The matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of Section 44AD(4) of the Act, the Appellant is required to disclose profits at 8% / 6% for the subsequent 5 years which was not done was the Appellant. The learned AO failed to acknowledge that the provision of Section 44AD(4) of the Act that the Assessee is required to disclose profits as per Section 44AD for next 5 years was brought into effect from Finance Act 2016. 7. In the remand report it was further brought on record that cash deposits were made from multiple cities across India like Jalandhar, Ambala, Ahmedabad, Ajmer, Dakor and Ludhiana etc. established that the cash was obtained from local customers was an afterthought. It may be submitted that there is no provision under the Act which states that sales cannot be made to ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee during the impugned year, which remained unexplained, was added to the income of the assessee. 7. Before the AO none came present on behalf of the assessee and no explanation was offered on these cash deposits in the bank account of the assessee. Accordingly, the entire cash deposits was treated as unexplained and added to the income of the assessee under section 69A of the Act resulting an addition of Rs. 11,34,399/- to the income of the assessee. 8. Before the ld.CIT(A), the assessee explained that the bank account pertaining to the assessee in which the cash deposit was noted by the AO, did not pertain to the assessee at all, and he revealed to the ld.CIT(A) the correct bank account belonging to the assessee. He pointed out that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the view that this is a most casual and arbitrary order passed by the authorities below on a serious aspect of assessment of income of an assessee, on which he was burdened with the liability to pay tax. There could not have been a more lax attitude exhibited by the Revenue authorities in framing an assessment, as in the present case. The reasons for the same are that the AO notes the bank account belonging to the assessee attributing cash deposited in the same to him, which actually never belonged to the assessee, and despite this fact having been pointed out to him in the remand proceedings and the same remaining uncontroverted by the AO, the ld.CIT(A) still goes on to treat the cash deposited in that account of Rs. 11.34 lakhs as the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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