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2016 (9) TMI 754 - ITAT DELHI

2016 (9) TMI 754 - ITAT DELHI - TMI - Undisclosed cash deposits - Held that:- We find that the claim of the assessee that the deposits in this undisclosed bank account are nothing but sale proceeds and that the withdrawals from these undisclosed bank accounts, were purchases, is not supported by any documentary evidence whatsoever. The assessee has failed to prove its claim. Thus the First Appellate Authority was right in coming to a conclusion that the assessee has failed to discharge the prima .....

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ific direction that only the peak credit in this bank account should be brought to tax. - ITA No. 135/Del/2014 - Dated:- 10-8-2016 - SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER For The Appellant : Sh. Kapil Goel, Adv. For The Respondent : Sh. F.R.Meena, Sr.D.R. ORDER PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER This is an appeal filed by the assessee directed against the order of Ld.CIT(Appeals)-XXVIII, New Delhi dated 10.10.2013 pertaining to the Assessment year .....

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l Bank of Commerce and HDFC Bank respectively amounting to ₹ 29,04,050 and ₹ 15,72,750/- totalling to ₹ 44,76,800/- ignoring the faultless plea of appellant to be assessed either as per application of reasonable profit rate to subject cash deposits being cash sales from unaccounted business activity or assessment as per PEAK theory as there are regular cash withdrawals and deposits in subject bank account on mere basis of conjectures and surmises. 2. That on the facts and in th .....

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sufficient nexus with assessee s business (in figures of 10,000 and 12,000 etc) ; c. In (AY 2009-10) same plea on identical facts is accepted by Ld AO u/s 143(3) assessment ; d. it is difficult to presage that assessee can provide full fledged vouchers/details/audit trail for unaccounted business activity/sales ; e. Ld AO has himself observed at para 17.6(B) and para 17.8 that cash deposits represent profit element in unaccounted business activity; f. Assessee has no other source of business and .....

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5,72,750 totalling to Rs. 4. That on the facts and in the circumstances of the case and in law the Ld CIT-A erred in confirming the addition of 299,232 on a/ of alleged unaccounted house hold expenses on mere basis of current level of inflation and perception for expenditure required on day to day running of house without anything more. Relief Claimed i) To delete the addition of ₹ 44,76,800 and direction to be assessed as per reasonable profit rate application or any lump sum addition and .....

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facts and in the circumstances of the case and in law the Ld CIT-A erred in confirming the addition of 299,232 on a/c of alleged unaccounted house hold expenses on mere basis of current level of inflation and perception for expenditure required on day to day running of house without anything more. Relief Claimed i) To delete the addition of ₹ 44,76,800 and direction to be assessed as per reasonable profit rate application or any lump sum addition and/ or peak theory; ii) To hold CIT-A gave .....

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ssessment order are that AIR information was received that the assessee had deposited cash amounting to ₹ 40,31,000/- in his SB account with Oriental Bank of Commerce, Pushpanjali Enclave and HDFC Bank, Pushpanjali Enclave, Delhi. In response to notice issued by the Assessing Officer (A.O.) balance sheet, profit and loss account and bank statement of Union Bank of India was filed. As per these details, sales of Mixi and Spare parts have been shown at ₹ 1,79,545/-. The A.O. deputed an .....

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liance to the summons and the subsequent show case was made. A final show cause was issued for 4.2.2013, in response to which the A.R. proposed to surrender 8% of the cash deposited in the bank i.e. ₹ 44,76,800/-. However no details/documents in support of the claim that the cash deposits represented sales were filed by the assessee. As detailed in the assessment order, ample opportunities were provided to the assessee to produce the details as required by the AO to finalise the assessment .....

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the nature of personal business and claiming that the source of cash deposits in the two banks are out of sales proceeds. Statement of the assessee Mr.Ram Nandan Mishra was recorded on oath and he was asked to furnish details of quantum of sales, vouchers etc. The assessee was unable to furnish any documentary evidence to support his claim. The assessee has not discharged his onus as regards the identity of seller or purchaser. 2.1. There is no documentary evidence in regard to the claim of the .....

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he deposits in this undisclosed bank account are nothing but sale proceeds and that the withdrawals from these undisclosed bank accounts, were purchases, is not supported by any documentary evidence whatsoever. The assessee has failed to prove its claim. Thus the First Appellate Authority was right in coming to a conclusion that the assessee has failed to discharge the primary onus to prove the source of cash deposits by relying on the decision of Hon ble Delhi High Court in the case of Indus Va .....

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n record. The only dispute in this appeal is against the addition made by the Assessing Officer towards certain deposits made in two bank accounts maintained by the assessee, totaling ₹ 45.50 lakhs. The assessee furnished cash flow statement before the learned CIT(A) by contending that the withdrawals from these bank accounts constituted the source of deposits therein. We have seen a copy of the bank account maintained by the assessee with ICICI Bank Ltd., from which it is apparent that th .....

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