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2015 (10) TMI 1622 - ITAT AHMEDABAD

2015 (10) TMI 1622 - ITAT AHMEDABAD - TMI - Addition u/s. 69A - peak credit in bank account No.2041 with Bank of Baroda - Held that:- Assessing Officer was not justified in rejecting the explanation of the assessee who had presented the books of accounts showing the receipts of undisclosed bank account from sale of foodgrain merely on the ground that it being an afterthought. It was incumbent upon the Assessing Officer to examine the books of accounts with the related evidences and documents and .....

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ooks of accounts and related documents as per law. - Decided in favour of assessee for statistical purposes. - ITA No. 2997/Ahd/2011 - Dated:- 19-6-2015 - N S Saini, AM And S S Godara, JM,JJ. For the Appellant : None For the Respondent : Mr Dinesh Singh, Sr DR ORDER Per: N S Saini, Accountant Member This an appeal filed by the assessee against order of the CIT (A)-IV, Surat, dated 12-7-2011. for Assessment Year 2007-08. 2. The only ground of appeal taken by the assessee in this appeal reads as u .....

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he brief facts of the case are that the assessee was maintaining a Bank account with Bank of Baroda, Areth being account No.2041. Te assessee was asked to explain the source of credit in the Bank account but no explanation was furnished. The A.O. issued show cause notice on 19-11-2009 requiring the assessee to show cause why the credit of ₹ 17,45,468/- in the said Bank account be not treated as unexplained money u/s. 69A of the Act. It was submitted that the assessee was doing business of .....

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after discovery of bank account and issue of show cause, books of accounts showing cash sales and purchases were produced which could be nothing but an afterthought. The assessee had not mentioned the existence of any agricultural income in the return or trading in agricultural products till the issue of show cause. The books produced showed sales made on all 365 days from September to January, there were deposits in the bank account of ₹ 7,79,000/- with negligible withdrawals of ₹ 2 .....

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/- treating the deposits as turnover. 4. On appeal, the CIT (A) observed that the assessee had not disclosed the bank account No.2041 with Bank of Baroda, Areth ether in the return of income or during the assessment proceedings till the time it was discovered by the department and show cause notice was issued. In the return of income assessee had not sown any agricultural income for rate purpose. This shows that the claim of belief of exempted income and production of related books of accounts i .....

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ed beyond reasonable doubt, the account is held as unexplained. The action of the A.O., in considering the peak credit as unexplained income of the appellant u/s. 69A is upheld. However, the CIT (A) deleted the addition on account of estimate of profit of ₹ 87,273/- treating the deposits as turnover because the existence of business was not accepted by the A.O. while making the addition on account of peak credit. 5. Before us, assessee filed an adjournment application seeking adjournment o .....

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he assessee had not disclosed the bank account maintained by it with Bank of Baroda, Areth being account No.2041. The same was detected by the department. The assessee had also now shown any agricultural income for rate purposes. Therefore, the explanation of the assessee that the deposit of ₹ 17,45,468/- in the bank account was the receipts of business of Food grains don e by the assessee during the year was an afterthought and the books of accounts produced before the A.O. were also an a .....

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bank account was ₹ 17,45,468/- and therefore he made addition of the peak balance in the account amounting to ₹ 9,62,184/- as unexplained income u/s. 69A of the Act. 10. The assessee had explained before the A.O. by filing the books of accounts that the amounts deposited in the said bank account represents sale proceeds of food-grain as the assessee was doing the business of sale and purchase of food-grain in the market yard and that the assessee under the impression that this was a .....

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