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TMI Blog2017 (10) TMI 1391X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1,16,450/- for Asst Year:-2009-10. The returned income was purported to be from sale of milk. The appellant's case was selected for scrutiny on the basis of AIR information regarding cash deposits exceeding 10 lakhs in the saving account maintained in Allahabad Bank, Fazilka. The Assessing Officer procured a copy of the bank account of the appellant by issuance of notice under section 133(6) of the Income Tax Act, 1961 (hereinafter, "the Act") to the branch manager of the Allahabad bank, whereupon it was noticed that the appellant had deposited Rs. 31,05,000/-, Rs. 10,000/-, and Rs. 1,000/- on various dates during the period under consideration. The Assessing Officer's query regarding the sources of such deposits in the bank account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re may be deleted as the same is illegal, invalid and void ab initio in the eyes of law." The assessee in support of its case submitted that while completing the assessment, the AO made addition of Rs. 31,15,000/- by invoking the provisions of Sec.69 of the I.T. Act, 1961 and out of this addition, the worthy CIT(A) allowed the benefit of Rs. 15,68,000/- and sustained the addition of Rs. 15,47,000/- against which the assessee has preferred the instant appeal. It is submitted that in the instant case, the addition was made by invoking the provisions of Sec.69 of the I.T. Act which legally at all not applicable to the present facts and circumstances of the case because admittedly the assessee was not maintaining any books of accounts and as su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be made u/s 69 of the Act having no legs to stand in law and the proposition of the Ld. AR is contrary to the provisions of Sec.69 of the Act. 6. We have gone through with the facts and circumstances of the case, as it reflects from the assessment order that more than 10 opportunities have been given to the assessee for joining the assessment proceedings, however, the assessee did not co-operate in the assessment proceedings and finding no option, the Assessing Officer was considered to complete the assessment u/s 144 of the I.T. Act on the basis of information and material available on record. As the assessee has failed to offer any explanation in respect of cash deposit of Rs. 31,15,000/- in his saving account No.4512 maintained by him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e books of account, if any, maintained by him for any source of income. If any classifies that for application of Sec.69 it is not mandatory to maintain the books of accounts and therefore, it cannot be said that Sec.69 presupposes two conditions (i) That the books of account should be maintained (ii) that the investment should be made outside the books of account. Sec.69 further classifies that "if the assessee offers no explanation about the nature and source of investment or the explanation offered by him, in the opinion of the Assessing Officer nonsatisfactory, the value of investment may be deemed to be the income of the assessee of such financial year which in simple meaning covers two situations (i) where the assessee offers no expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingh, s/o Sh. Harbansh Singh by sale deed executed on 25.06.2008, however, the said amount of Rs. 16,30,000/- alleged to be given to the assessee only on 06.01.2009 and it reflects that the property does not belong to Sh. Shukhdev Singh but he has acted only as holder of power attorney of Sh. Sawarn Singh, S/o Sh. Harbhajan Singh and in principle consideration amount was supposed to be paid to Sh. Sawarn Singh being an owner of the property. Explanation offered by Sh. Shukhdev Singh creates so many suspicions particularly that being an advocate, he remains busy in the Court and given the aforesaid money on 20.01.2009 with the understanding that the same will be received later on. In our thoughtful consideration, the explanation offered by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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