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2017 (7) TMI 1322 - AT - Income TaxUnexplained income of assessee u/s.69 - Addition of cash deposited into savings bank account and amount deposited into current account of the assessee - HELD THAT:- Section-69 makes it clear that onus is on the assessee as regards furnishing of explanation relating to deposits, which is not recorded in the books of accounts, if any, maintained by the assessee. Where the assessee offers no explanation or where the explanation offered by the assessee is not satisfactory in the AO’s opinion, the value of the unexplained investments, the value of the unexplained investments would be treated as income of the financial year in question. Whenever explanation offered by the assessee were not fully relied upon by the Department, it cannot be said that the Department had any further burden to prove that this was an income of assessee. Where the assessee had failed to prove the source of investments to the satisfaction of the AO, the AO should be justified in treating the same as unexplained investment u/s.69 of the Act. In the present case, the plea of assessee is that it is the part of the undisclosed turnover and being so, only GP of such to be estimated as income of assessee. The assessee, before us, was not able to show the details of the sales made by the assessee with reference to any purchase. As rightly pointed out by the ld.D.R, all the purchases and expenditure already recorded by the assessee in its books of accounts and once the purchases and expenses were already recorded by the assessee in his books of accounts, there is no question of estimating any income. On such deposits made into bank account, the entire unaccounted deposits to be considered as unexplained income of assessee u/s.69of the Account. Another argument that Sec.285A provides only information with regard to cash deposit into SB A/c and it does not authorize the AO to collect information with reference to current account. In my opinion, addition made by the AO u/s.69 of the Act as explained earlier. Section 69 authorizes the AO to consider unexplained deposits into bank account, whenever assessee failed to explain the source of such deposits. Being so, no infirmity in the order of lower authorities and the same is confirmed. - Decided against assessee.
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