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2015 (8) TMI 458 - AT - Income TaxAddition on account of deposits made in undisclosed bank account with Prime Coop. Bank Ltd. (PCBL) without allowing set off of loss made in purchase of sale of shares and future option - Held that:- Copy of the statement of account of bank in question was filed by the assessee before us which shows that deposit of ₹ 37.75 lakhs was not made in the said bank account at a time, but, the same amount represents the aggregate amount of deposit, which was made in the said bank account during previous year. A perusal of the bank account shows that there were regular withdrawals from the said bank account itself. No material has been brought on record by the revenue to show why the withdrawals made from the same bank account could not have been available with assessee for making subsequent deposits in the bank account. In above facts, in our considered view, adoption of entire aggregate deposits during the year of ₹ 37.75 lakhs as income, by ignoring the withdrawals, was not justified. We find that the peak deposits in the said bank was ₹ 12,31,169.88 on 17.1.2008. Further, the frequency of deposit and withdrawal indicates that the assessee was carrying on certain undisclosed deposits. Therefore, it would be reasonable to estimate the said business income, and also to treat the same as business income of the assessee. We, therefore, estimate the assessee’s profit from such business at the rate of 5% of ₹ 37.75 lakhs, which comes to ₹ 1,88,750/-. Therefore, in our considered opinion, it would be just and fair to treat ₹ 14,19,919.88 (Rs.12,31,169.88 plus ₹ 1,88,750/-) as income of the assessee in respect of the bank account in question. We, therefore, delete the addition to the extent of ₹ 23,55,080.12 (Rs.37,75,000/- minus ₹ 14,19,919.88) and confirm the addition to the extent of ₹ 14,19,919.88, accordingly - Decided partly in favour of assessee.
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