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Shri Satya Pal Singh Versus The Income Tax Officer, Ward-22 (1) , New Delhi

2017 (9) TMI 814 - ITAT DELHI

Unexplained cash deposits in the bank account - increased gross receipts - Held that:- It is an admitted fact that assessee maintained bank account with Bank of Rajasthan Limited, Kalkaji, Delhi in which unexplained cash deposits were found and for three months assessee could not offer any explanation before the authorities below. The assessee very cleverly tried to revise the gross receipts to ₹ 25,01,020 against gross receipts of ₹ 9,25,570 declared in the return. No basis or evide .....

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und very low and it was also not supported by any evidence. His son started filing return of income when he just passed Senior Secondary Examination. The story propounded by assessee is also not acceptable because for the last 07 years if the son of assessee was having cash amount with him, why he was not deposited same in the bank account and why the cash of ₹ 8 lakhs have been given to the assessee in assessment year under appeal for depositing in cash in the joint account maintained by .....

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t from the A.O. at the assessment stage. Therefore, assessee has created an afterthought story to explain the cash deposited in the Andhra Bank account. No evidence has been filed on record to explain the source of the cash deposited in the bank account maintained by assessee. Further, assessee has not raised any of the grounds of appeal to challenge both the additions. Therefore no evidence to explain the source of the cash deposits in the bank accounts of the assessee, no interference is calle .....

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ing the year, assessee has made cash deposits of ₹ 11,04,100 in the S.B. account maintained with bank of Rajasthan Ltd., Kalkaji, New Delhi. Assessee was asked to furnish source of the cash deposited in the bank account. Assessee replied before the A.O. which is reproduced in the assessment order in which the assessee explained that copy of the capital account is filed. The assessee has capital a/c ₹ 10,62,000, profit added ₹ 1,85,114, then, this total capital comes to ₹ .....

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the assessee noted that assessee filed return of income of ₹ 1,09,610 against gross receipt of ₹ 9,25,570 and assessee did not maintain books of account. Therefore, assessee s revised claim has no basis to make such declaration as no documents in support of the same has been furnished during the assessment proceedings. The A.O. also noted that assessee filed revised statement of receipts because he was not able to justify the source of the cash deposits in the bank account. Revise st .....

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of assessee under section 69A of the I.T. Act and accordingly, made the addition of ₹ 3,59,900 and income of the assessee was computed at ₹ 4,69,510. 3. The assessee challenged the addition before CIT(A). However, assessee did not prosecute the appeal before the Ld. CIT(A). The Ld. CIT(A) not only confirmed the action of the A.O. in making the addition of ₹ 3,59,900, but also enhanced the addition by another amount of ₹ 8 lakhs. The Ld. CIT(A) at the appellate proceeding .....

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) restored the matter back to the file of Ld. CIT(A) for deciding the issue afresh. The assessee challenged the addition before the Ld. CIT(A) after passing of the order by the Tribunal. The submissions of the assessee are reproduced in the impugned order in which the assessee explained that assessee has deposited business receipts in his two bank accounts and the total credits are ₹ 47,44,000. Out of this, ₹ 9 lakhs has come through cheques as temporary loan from M/s. Pal & Co w .....

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ses etc., used to be met from travelling etc., received from his Company. He had accumulated his full salary of seven years, which comes to approximately ₹ 9,50,000. Since he wanted to go to USA and the payment for tickets, visa etc., were to be given by cheque, he gave the amount of ₹ 8 lakhs to the assessee being his father which were deposited in cash as ₹ 5,50,000 and ₹ 2,50,000 on 11.04.2007 in the joint bank account of assessee and his son. Apart from this, assessee .....

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impugned order are reproduced as under : Findings : 4.1. I have carefully considered the assessment order passed by the A.O, original appellate order passed by the Ld. CIT(A) in appeal No. 124/10- 11 and the appellate order of the Hon ble ITAT restoring back the matter for fresh adjudication to the file of CIT(A). During the restored back proceedings, Ld. AR has provided copy of bank a/cs maintained with Andhra Bank, the Bank of Rajasthan Ltd. along with detail of total deposits and withdrawals .....

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laim to have received ₹ 9 lac from M/s Paul & Co., copy of ledger a/c in the books of above company has also been filed. 4.1.1. Further, it has been submitted by the Ld. AR that apart from the loan of ₹ 9 lac, assessee has received ₹ 8 lac from his son out of his savings from salary of 7 years on account of payment for ticket, visa, etc., for his trip to USA. Further, it has been submitted that amount of ₹ 40,000/- was received by cheque towards business receipt which .....

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eceipt on which by applying the profit rate of 12%, the business profit comes to ₹ 3,60,480/- and after claiming deduction u/s 80C of ₹ 1 lac, the taxable income comes to ₹ 2,60,480/-. 4.1.2. Carefully considering the facts of the case as emanated from the assessment order and original appellate order, it is pertinent to mention here that while passing the original appellate order, Ld. CIT(A) had specifically mentioned that no books of a/c were found to be maintained by the app .....

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tio. 4.1.3. From the factual matrix of the case, as discussed above, it is noticed that apparently there is no change in the facts of the case, which were before the AO and the Ld. CIT(A) during the original assessment/appellate proceedings. Even during the restored back proceedings, no plausible reasons have been provided by the Ld. AR to explain the increase in the business receipts disclosed before the AO from ₹ 9,25,570/- to ₹ 25,01,620/-, maintaining the same profit even on the .....

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omments of the AO while passing the assessment order that if there was any bonafide mistake in the return filed, the same should have been rectified by the assessee within the statutory time available with him as per provisions of section 139(5) of the Act before the expiry of one year from the end of relevant assessment year or before the completion of assessment, which is earlier, but in this case, appellant failed to exercise this option and when AO and Id. CIT(A) detected infirmities in the .....

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ith regard to the enhancement made by the Id. CIT(A) in the first round of appeal to the extent deposits amounting to ₹ 8 lakh (Rs.5.50 lakh and ₹ 2,50 lakh) in SB account maintained with Andhra Bank, the contention of the Ld. AR that the amount of ₹ 8 lac was the accumulated 7 years salary of appellant s son, the same cannot be accepted to, as the annual income of his son is quite low, detail of which is reproduced below : A.Y. Income declared 2002-03 Rs.51,880/- (Income from .....

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thout spending a single penny is beyond imagination and cannot be accepted to. Therefore, it is held that the submissions are quite general in nature without supporting of any evidence and the veracity of the same cannot be relied upon and it is held that an attempt is being made by the assessee to cover up the unexplained source of deposit. Even if the entire figure of salary income is considered for a while as the source of deposit of ₹ 8 lac, the amount of salary still falls short of th .....

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being treated as unexplained cash deposit and accordingly, AO is directed to issue fresh notice of demand incorporating the above amount of ₹ 8 lakh. Penalty proceedings u/s 271 (1 )(c) have been initiated separately for the above additions as appellant has concealed the true particulars of his income and provisions of Explanation (1) to above section found to be clearly applicable in this case. 5. In the result, appeal is dismissed. 6. I have heard the Learned Representatives of both the .....

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e by the Ld. CIT(A) Learned Counsel for the Assessee in view of the above stated that assessee has not raised any ground of appeal challenging both the above additions. 8. In view of the above contentions of both the parties, I am of the view that no interference is called for in the matter. It is an admitted fact that assessee maintained bank account with Bank of Rajasthan Limited, Kalkaji, Delhi in which unexplained cash deposits were found and for three months assessee could not offer any exp .....

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below. There is thus, no justification to interfere with the orders of the authorities below. 9. Further, as regards the addition of ₹ 8 lakhs enhanced by the Ld. CIT(A), Ld. CIT(A) has specifically noted that accumulation of ₹ 8 lakhs with the son of the assessee has not been proved and same cannot be accepted. The annual income of son of assessee was found very low and it was also not supported by any evidence. His son started filing return of income when he just passed Senior Seco .....

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