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2019 (5) TMI 1319 - AT - Income TaxRevision u/s 263 - unexplained cash deposits - lack of enquiry - HELD THAT:- The assessee was unable to substantiate the source of deposits and he accepted 8% net profit of the total deposits. AO is not only an adjudicator, but also an investigator. It is the duty of the Assessing Officer to ascertain true facts stated in the return when the circumstances of the case are such as to provoke any enquiry. From the order of the AO, it is clear that the assessee has taken different stands at different points of time. At once occasion, the assessee states that different parties deposited cash in assessee’s account so as to facilitate the payments by withdrawing the same through ATM while at other place, the assessee admitted the entire deposit as his business turnover and offered it for taxation @ 8%. AO had, however, not made any enquiry as to the actual business of the assessee. He has also failed to investigate the source of deposits in assessee’s bank account, but straightway accepted the contention of the assessee without ascertaining the truth behind the cash deposits. The Assessing Officer has only endorsed the offer of the assessee without making any enquiry. Therefore, it is a case of lack of enquiries on the part of AO before accepting the offer of the assessee in the instant case. - Decided against assessee.
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