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2023 (6) TMI 109 - AT - Income TaxAssessment u/s 144 - addition applying net rate of 8% on total deposit in bank - cash deposited during demonetization - onus to prove - HELD THAT:- Finding of the AO that deposits in this bank account in the name of ‘Yogi Enterprises’ are business receipts is without any basis and evidence on record. The onus is entirely on the assessee to file return of income as also to explain nature and source of each of the deposits in this account, and also to comply with the requirements of various provisions of statute as are concerning with the allowability of deductions towards business expenses while computing business income, such as provisions of Section 37(1), 40A(2) , 40A(3), 40(a)(ia), 36(1)(va) etc etc. The onus is squarely on the assessee to prove that he is carrying on business and compliance with provisions of statute before any business deduction is allowed to the assessee. Similarly, the onus is on the assessee to explain every source of deposits in his bank account . Similarly, for other addition being made by the AO which were the cash deposits in the bank accounts of the assessee during demonetization period (account no.13920100031032 and 501000186411596), for which no explanation was furnished by the assessee before the AO as well before ld. CIT(A). CIT(A) on its part has simply confirmed the assessment order, while he was required to give his independent reasoning by way of speaking order. Reference is drawn to provisions of Section 250(6) of the 1961 Act. Thus, restoring the entire matter back to the file of the AO for denovo assessment and orders of both the authorities are set aside and the matter is restored to its original status for framing denovo assessment by the AO - Assessee appeal allowed for statistical purposes.
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