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2012 (10) TMI 671 - AT - Income TaxEx parte assessment u/s 144 - addition on unexplained cash deposited in his bank account - Held that:- The medical certificate dated 12.3.2010 for the period 4.10.2009 to 28.2.2010 mentioned complete bed rest. It is mentioned in the said certificate that the certificate is not valid for medicolegal purpose. In any case, this certificate does not explain the absence on 17.7.2009 as also how could the assessee appear before the AO on 22.10.2009, despite being advised bed rest. The factum of illness and bed rest was never communicated to the AO during the course of assessment proceedings nor it was explained as to what prevented the assessee from explaining entries in his bank account .Even in the documents submitted by way of additional evidence, the assessee did not furnish any evidence regarding source of cash deposited in his bank account. In these circumstances, the CIT(A) while discarding the aforesaid medical certificate,upheld the completion of best judgment assessment and in the absence of any evidence regarding source of cash deposited in the bank, upheld the addition made by the AO. Thus the authorities were justified in proceeding to make best judgment in terms of provisions of sec. 144 of the Act in view of persistence non-compliance of the notices over a period of one yea - against assessee. Before the AO assessee did not put forth any explanation nor furnished any evidence regarding the source of such cash. On appeal,, the assessee pleaded that deposits and withdrawals in the said bank account ,related to his business however, the assessee did not place any evidence before the AO or the CIT(A),establishing nexus of cash deposited in the bank with his receipts from business. Whether the entire turnover in cash was deposited in the bank, has not been established by the assessee. The onus is on the assesseee to establish that the cash deposited in the bank ,originated from his turnover of the business. In these circumstances when the complete facts are not present it fair and appropriate to vacate the findings of the CIT(A) and restore the matter to the file of the AO with the directions to allow one final opportunity to the assessee to establish the nexus of his business receipts with cash deposited in the bank as also to explain the nature of transactions in the said account and thereafter, pass appropriate orders in accordance with law - in favour of assessee for statistical purposes.
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