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2020 (1) TMI 785 - DELHI HIGH COURTReopening of assessment u/s 147 - unexplained cash credit u/s 68 - HELD THAT:- Assessee has failed to produce any material to authenticate his contentions that the cash deposits in his account were on account of the sales being made by him from the Kirana business. In absence of any purchase bill to justify that the deposits in the bank account were sale receipts, the tax authorities cannot be faulted for making the addition of the unexplained cash entries in the bank account. Firstly, the appellant chose to abstain from joining the assessment proceedings despite several notices. Then, he did not render any cogent explanation or documentary evidence to support his contentions before the CIT (A) or ITAT. Pertinently, the assessee had not filed his income tax return for AY 2010-11 and justified his action by contending that he was not liable to file the same as he had adopted presumptive taxation scheme under Section 44AD of the Act and had availed the benefit thereof, wherein there was no obligation to explain individual entry of cash deposit in his bank account unless such entry had no nexus with the gross receipts. However, when confronted with the cash entries, he could not give any convincing justification. Tax authorities upheld that the cash has been deposited merely to generate funds in the bank account, whenever payments were required to be made by cheque. Therefore, indeed there is no nexus with the gross receipts. The appellant has not produced any material in support to explain the entries of cash such as books of accounts or purchase bills, etc and we find no merit in the Appellant’s contentions. There are consistent and concurrent findings of the fact by the lower tax authorities, no question of law arises for our consideration. - Decided against assessee.
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