TMI Blog2020 (11) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... cash withdrawals of ₹ 60,54,406. There is some truth in assessee s contention that cash deposits are attributable to agricultural / trading activities and entire cash deposits in the current account of the assessee cannot be treated as unexplained money and brought to tax u/s 69A. One more opportunity should be granted to the assessee to prove his case that cash deposits are attributable to the agricultural / trading activities. For the above said purpose, the issue raised in this appeal is restored to the Assessing Officer - Appeal filed by the assessee is allowed for statistical purposes. - ITA No.141/Bang/2020 - - - Dated:- 20-11-2020 - Shri George George K, Judicial Member For the Appellant : Sri.Venkatesh Pani, Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to appreciate that the appellant was dealing in perishable goods and the entire receipts could not have been added as the income of the appellant and a reasonable estimate as prevailing in the line of the business alone could have been considered as the income of the appellant, on the facts and circumstances of the case. 7. The appellant denies himself liable to the levy of penalty under section 234 of the Act. 8. The Appellant craves leave to add, alter, delete, substitute or modify any of the grounds urged above. 9. In the view of the above and other grounds that may be urged at the time of the hearing of the appeal, the Appellant prays that the appeal may be allowed in the interest of justice and equity. 3. Brief fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash deposits u/s 69A of the I.T.Act. The relevant finding of the Assessing Officer reads as follow:- 9. In the absence of any reply / explanation forthcoming from the assessee, the analysis of the Bank account was made. The assessee has opened the Bank account on 29.7.2016. There are frequent cash deposits during the year. Immediately after the deposits payments are made to various parties and on certain occasions, there are withdrawals by cash. Further, during the demonetization period the assessee has made a cash deposit of ₹ 10,00,000/- on 10.11.2016. On the same day, a sum of ₹ 10,00,000/- is transferred to M/s. Ashirwad Sheet through NEFT. The total deposit during the demonetization period is at ₹ 11,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... findings of the Assessing Officer. Hence, the appeal of the assessee was dismissed. 5. Aggrieved by the order of the CIT(A), the assessee has preferred this appeal before the Tribunal. The learned Counsel for the assessee has filed two paper books enclosing therein copy of the written submission filed before the CIT(A), the additional evidence produced before the CIT(A), details of returns of income filed for the various assessment years 2013- 2014 to 2019-2020, Form 26AS for assessment years 2015- 2016, 2018-2019, etc. The learned Counsel for the assessee reiterated that the assessee is an illiterate person and was unaware of the provisions of the Income-tax Act, 1961. It was stated that there is shortcoming on the part of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tices issued u/s 142(1) of the I.T.Act. Consequently, the entire cash deposits in assessee s bank account for the financial year 2016-2017 was treated as unexplained money and brought to tax u/s 69A of the I.T.Act. For the addition made u/s 69A of the I.T.Act, tax was levied at the rate of 60% in view of the provisions of section 115BBE of the I.T.Act. Before the CIT(A), the additional evidence was not admitted, since the assessee did not fulfil the conditions mentioned under Rule 46A of the I.T.Rules. Thereafter, the appeal before the CIT(A) was dismissed for the reason that the assessee was not able to point out any error in the order of the Assessing Officer. 7.1 It is true that there has been lapses on the part of the assessee dur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various assessment years. For the relevant assessment year, the return of income was filed on 16.10.2019 (refer page 109 to 152 of the paper book). However, the assessment for assessment year 2017-2018 was completed u/s 144 of the I.T.Act prior to the date of filing of the return (assessment was completed on 25.09.2019). The assessee in the paper book has also filed Form 26AS for the assessment years 2015-2016, 2018-2019, etc. On perusal of Form 26AS for the above mentioned assessment years shows huge cash deposits and withdrawals. For example, for the assessment year 2018-2019 there are cash deposits of ₹ 49,94,230 and cash withdrawals of ₹ 60,54,406. Therefore, there is some truth in assessee s contention that cash deposits ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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