TMI Blog2022 (1) TMI 726X X X X Extracts X X X X X X X X Extracts X X X X ..... s made on 18.10.2010 and explained the sources for the cash deposits made on 21.10.2010. When the AO accepted part of her explanation and required the assessee to prove the sources of the remaining deposits, the assessee took a different stand and canvassed that her income is from real estate business and it is covered u/s 44AD etc. However, she has not let any material/ evidences before the lower authorities to prove that she was in the real estate business. It is clear that the assessee has been inconsistent about the nature of sources of the impugned cash credits. She has not let in any material/ evidence either before the lower authorities or before us to establish that the nature of her activities are falling within the realm of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly on 22.09.2016. Since, this delay is neither willful nor wanton but due to the circumstances beyond the control of the assessee, it was pleaded that the delay in filing the appeal be condoned and the appeal be decided on merits. 3. We heard the rival submissions and condone the delay. 4. The assessee filed this appeal with the following grounds of appeal: 1. The order of the Commissioner of Income Tax (Appeals) dismissing the appeal is contrary to law, erroneous and unsustainable on the facts of the case. 2. The CIT(A) erred in confirming the addition of ₹ 25 lacs as unexplained investment u/s. 69 of the Act. 3. The CIT(A) failed to appreciate that the assessee has fully explained the sources of cash deposit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 60 lakhs. Since, the entire cash deposits of ₹ 54,97,000/- in the IOB account is fully covered in the total turnover, the assessee is not required to explain the individual deposits in the bank account as her return is fully covered u/s. 44AD of the Act. Neither the AO nor the Ld. CIT(A) appreciated this fact and hence the ld. AR submitted that the assessee s explanation may be accepted on the lines of grounds of appeal, supra, and the orders passed by the lower authorities be set aside. 6. Per contra, the Ld DR submitted that the assessee s case was selected for scrutiny for examining the cash deposits made in the bank account based on the AIR information. Taking through the assessment order and the appeal order, the Ld. DR subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness and once the provisions of section 44AD is covered , she is not required to maintain books of account and she was not under any obligation to explain individual cash deposits in the bank account. Therefore, the Ld. AO concluded, inter alia, that the assessee s claim is riddled with inconsistencies for the following reasons. 1. If the cash deposits represented the assessees turnover of ₹ 55,25,000/-, which is admitted u/s. 44AD and her plea that the cash withdrawn on 18.10.2010 was re-deposited on 21.10.2010 is considered as correct , then the total turnover comes only at ₹ 30,25,000/-. Therefore, the assessee s claim that the cash deposits in her account represents her turnover of ₹ 55,25,000/- is incorrect. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not supported with any evidences. It was not known how the funds from abroad were received in India and how the cash was deposited into her SB account. In order to substantiate her claim, she was asked to prove the flow of funds from her NRI son from abroad into some bank account in India and the subsequent withdrawal of cash from such account. 6.1 Thus, since the assessee has not furnished any explanation on the above points, and when she was confronted with the possibility of her sources being discredited in view of the above facts and propositions, the assessee by her letter dated 17.03.2014 has resorted to a new theory as an afterthought that she was engaged in real estate . So, the Assessing Officer held that if the assessee was ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken by her before the AO and before the Ld. CIT(A) is correct. Therefore, the ld DR pleaded that the orders of the lower authorities be sustained. 7. We heard the rival submissions and gone through the relevant material. Though, the assessee admitted the income u/s. 44AD, with regard to the sources of cash deposits made in the bank account , initially, she submitted that her nature of business of Spoken English Coaching Class Profession and gave certain sources for the cash deposits made on 18.10.2010 and explained the sources for the cash deposits made on 21.10.2010 as extracted , supra. When the AO accepted part of her explanation and required the assessee to prove the sources of the remaining deposits, the assessee took a different ..... X X X X Extracts X X X X X X X X Extracts X X X X
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