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2016 (10) TMI 252 - HC - Income TaxUnexplained source of huge Cash Deposit in Bank Account - assessee declared his income u/s 44AF - Whether Presumptive charge of income u/s 44AF distinguishable from arriving at chargeable income u/s 29 - Tribunal decided the issues raised before it against the assessee - Held that:- AS held by ITAT that when the assessing officer had sought from the assessee the source of the cash deposits to the tune of ₹ 18,31,500/- made by him in his bank account, virtually no documentary proof regarding purchases/sale of furniture was submitted by him. Photocopies of only a few of the bills which were produced pertained to the current year only. The names of the parties from whom the assessee had purchased the material were not disclosed. The Tribunal noted that throughout the year, on different dates the assessee had made deposits of identical amounts of ₹ 49,500/- and it was only at the fag end of the financial year i.e. on 02.02.2008 and 13.02.2008 that the assessee had made withdrawals of ₹ 1,50,000/- and ₹ 2,00,000/-. The assessee was also found to have failed to prove any purchases made by him from his withdrawals especially when these withdrawals were made only in February, 2008 i.e. at the fag end of the financial year. The Tribunal further noted that in his return, the assessee had shown sales of ₹ 18,82,800/- with net profit of ₹ 1,08,000/- and with this low profit margin, without making purchases no sale could have possibly been effected by the assessee. Thus, the cash deposited by the assessee in his bank account was not believed to be from sales effected by him. The assessee's plea that he usually purchased furniture on credit basis was also considered and rejected as no evidence of making any purchases on credit had been filed by him before any of the authorities. The assessee was also found to have established no nexus with the receipts/turn over and the deposited cash in his bank account. Link evidence to show that the sales were directly related to the cash deposits made by him in his bank account, was also found missing by the Tribunal. In view of the afore-referred facts, the Tribunal held that the assessee's case was distinguishable from Surinder Pal Anand's case ( 2010 (6) TMI 404 - Punjab and Haryana High Court ). Accordingly, the appeal of the revenue was allowed and the addition made by the assessing officer was restored.
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