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TMI Blog2015 (10) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... the source of cash deposits aggregating to Rs. 47,86,800 found to be made in his bank account. The assessee however did not comply with the notices issued by the A.O. during the course of assessment proceedings and did not offer any explanation as regards the cash deposits found to be made in his bank account. The A.O. therefore, was left with no option but to complete the assessment exparte under section 144 to the best of his judgment on the basis of the material available on record. In such assessment made vide order dated 30.12.2011, he added the entire amount of Rs. 47,86,800 of cash deposits found to be made in the bank account to the total income of the assessee treating the same as unexplained. 3. Against the order passed by the A.O. under section 144, an appeal was preferred by the assessee before the Ld. CIT(A) and following submission was made in writing by the assessee before the Ld. CIT(A) in order to explain the cash deposits found to be made in his bank account. "The appellant herein is an individual deriving income from small and petty contracts. For the assessment year 2009-10, the total turnover was Rs. 15,02,400 and the appellant estimated the income at 10% of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sferring the amounts to the concerned universities. This clearly indicates that the amount deposited into the bank account does not relate to the appellant herein. The Assessing Officer, however, completed the assessment ex-parte without providing proper opportunity to the appellant and treated all the cash deposits into the bank account of Rs. 47, 86, 800/- as the income of the appellant. In this regard it is submitted that the amount of Rs. 12,27,955 was by way of private miscellaneous works undertaken by the appellant and this was also deposited into the bank account. This amount was also not considered by the Assessing Officer. Further, the Assessing Officer ought to have observed the fact that cash was deposited and on the same day or on the next day DDs were purchased in favour of the relevant Universities which would clearly indicate that the students have deposited the cash into the bank account of the appellant and purchased DDs. The Assessing Officer ought to have seen that it is only to facilitate the purchase of DDs by the said students, the appellant allowed his bank account to be operated by outsider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposited, Demand drafts and the amount in Pounds. The appellant also submitted copies of the Demand drafts obtained from the DCB Ltd., by the appellant herein. A certificate issued by DCB Ltd., was also submitted. As the above material could not be filed before the Assessing Officer, the appellant submitted such details as an additional evidence. When the said additional evidence was forwarded to the Assessing Officer and the Addl. CIT they commented that such additional evidence need not be admitted. In this regard, the appellant humbly submits that as stated above the deposits were made into the bank account by various persons prosecuting their studies in foreign universities. To ascertain the details from the persons concerned, it took substantial time and in the meantime the Assessing Officer completed the assessment ex-parte. It can be seen from the certificate issued by the Development Credit Bank Ltd., that the certificate was issued at a later dated on 01-10-2012 after the completion of the assessment. Similarly, the Demand Drafts and the other details of the receipts were to be obtained from the concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant humbly submits that the Assessing Officer is not justified in making any addition on this account. In the circumstances, the appellant requests the Hon'ble Commissioner of Income-Tax (A) to kindly allow the appeal as prayed for." 3.2. The Ld. CIT(A) found the explanation offered by the assessee as regards the cash deposits found to be made in his bank account as acceptable and deleted the addition of Rs. 47,86,800 made by the A.O. for the following reasons given in paragraph 7.1 and 7.2 of his impugned order : "7.1. From the details furnished, it is clear that the students utilized the bank account of the appellant for purchase of the Demand Drafts and the said amount cannot be considered as unexplained or as the income of the appellant. I also find from the return of income filed that the gross contract amount received was Rs. 14,62,790/-. If the amount deposited by the students and the contract receipts are taken into account, the total deposits would be Rs. 48,34,195/-. 7.2. I also find that there were cash withdrawals from the bank account and cash deposits made into the same bank account ..... X X X X Extracts X X X X X X X X Extracts X X X X
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