9911796707
TMI Blog2025 (3) TMI 762X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee, without there being any benefit to the withdrawals, in our opinion, is not justified. We find the assessee filed original return of income declaring a total income of ₹. 7,72,241/- and in response to the notice under section 148 of the Act, declared income of ₹. 31,51,430/-. The break-up of the said income is reflected in impugned order. On examination of the same, the assessee stated to have been earned income from salary, income from other sources and income from business. CIT(A) was of the opinion that there was no evidence brought on record by the Assessing Officer to bring entire cash deposits as income of the assessee chargeable to tax. In view of the same, we find no infirmity in the order of the CIT(A) and it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 42(1) of the Act. On an examination of the same, the Assessing Officer observed that the assessee failed to produce the clients for whom the contract work was carried out and thereby, added an amount of ₹. 2,92,16,317/- [₹. 1,98,72,352 + ₹. 93,43,965] as total income of the assessee under section 69A of the Act vide his order dated 28.12.2018 under section 143(3) r.w.s. 147 of the Act. 4. Having not satisfied with the assessment order, the assessee challenged the same before the ld. CIT(A). Before the ld. CIT(A), the assessee contended that the entire amount cannot be taxed legally as there are regular deposits and withdrawals both by way of cheque and cash. Further, it was contended that no material was found regarding u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entire cash deposit as income of the assessee, without there being any benefit to the withdrawals, in our opinion, is not justified. We find the assessee filed original return of income declaring a total income of ₹. 7,72,241/- and in response to the notice under section 148 of the Act, declared income of ₹. 31,51,430/-. The break-up of the said income is reflected in page 15 of the impugned order. On examination of the same, the assessee stated to have been earned income from salary, income from other sources and income from business. The ld. CIT(A) discussed all the issues in detail and for ready reference, we deem it proper to reproduce relevant part as under: 6.8.12 The Appellant in the submission made before the undersig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest income upon fixed deposits. The ADI (Inv.) had an information about the cash deposit made by the Appellant in ICICI and AXIS Bank, Madurai Branch. In the statement recorded the ADI (Inv.), the Appellant had admitted that no proper books of accounts were maintained and the income was arrived on estimated basis by adopting cash deposits as total contract receipts for the year. The A.O. on the basis of the Report of the ADI (Inv.) has initiated proceedings u/s 147 of the Act and completed the assessment by adding the entire cash deposit as unexplained investment in the hands of the appellant as per the provisions of the section 69A of the Act. 6.8.15 Now the issue before the undersigned is whether the cash deposits made by the Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellant and conveniently omitted to consider the relevant withdrawals. There exists no evidence to treat the entire cash deposit made by the Appellant as his income. When the withdrawals are considered the closing balance is nearly minimum. Obviously, this established the fact that the Appellant is performing some kind of work relating to his business. Naturally, in such circumstances the profit attributable to such business can alone be taxed as income of the Appellant. As pointed by the Apex Court even though the explanation about the nature and sources of the cash deposit made was not satisfactory but in the facts and circumstances of the case it was not possible for the assessee to earn the amount of the cash deposit made as his inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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