TMI Blog2019 (5) TMI 1952X X X X Extracts X X X X X X X X Extracts X X X X ..... he total deposits made in the assessee s saving bank account can be considered as his business turnover which gets support from the observation of AO for the year under consideration and the AO s observation in assessment of the preceding year where on identical facts, the trading turnover of dairy business of the assessee, cash deposits from cash transactions has been accepted as his business turnover and the profit disclosed in the return was accepted. Cash deposit and withdrawal in the bank account was made regularly by the assessee during the year, it is very reasonable to say that the same was business turnover and therefore only gross profit addition is justified in the facts of the present case. Hence, we are not inclined to ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. That any other relief or reliefs deemed fit in the facts and circumstances of the case may be granted. 5. The appellant craves leave to add, alter or vary the grounds of appeal before or at the time of hearing. 2. Apropos, ground no. 2, the assessee challenged that the addition of Rs.33,57,510/- on account of the peak cash deposit in his bank account as unexplained investment. 3. Brief facts of the case are that the assessee derived income from business of dairy products and interest on bank depositsand he furnished the return of income on 20.05.2011 declaring total income of Rs.1,85,254/-. The case of the appellant assessee was selected under scrutiny on the basis of AIR information that assessee had deposite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional Bank, Rohta, Agra. In support of his contention, the assessee submitted copy of sale deeds,certificate, and a chart showing the details of the amount collected for depositing into his saving bank account to show that the cash deposit belongs to the society and not to him. It was pleaded that the addition made by the AO is not justified and needs to be deleted. The ld. CIT(A) considering the explanation of the assessee and going through the documents/ evidences filed by assessee, rejected the contention of the assessee stating that the documentary evidences filed by the assessee cannot be accepted as they were not produced before AO.Thefindings of the ld. CIT(A) in para 7 of the appellate order are reproduced as under: - I have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led this appeal before us. 6. Ld. Authorized Representative for the assessee reiterated the submissions made before the ld. CIT(A). The Ld. AR contended that the ex-parte order has been passed in haste based on wrong facts. The AO in his assessment order himself accepted by stating that the assessee is carrying onthe business of dairy products besides interest income on bank deposits. He contended that the deposits made in the saving bank account represents his turnover on which he must have earned profit, still the AO proceeded to make the addition of Rs.33,57,509 treating the peak credit balance as unexplained money of the assessees business turn over. The relevant portion as per page-2, para-1 of the Assessment order is reproduced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . counsel has taken alternative argument that since the deposits and withdrawals were made regularly by the assessee in his saving bank account, hence, the deposits can be treated as business turnover of the assessee if the lower authorities were not satisfied with the explanation of the assessee. For this purpose, he referred to the preceding year s assessment proceedings in the assessee s own case, where the AOhas accepted the profit of Rs. 1,59, 750/- declared by the assessee in his original income tax return treating the total cash deposits of Rs. 58,64,456/- in the saving bank account of PNB, as his businessturnover. The assessment order of immediately preceding Assessment Year 2010-11 is placed on record. 9. The Ld. Counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dairy products through cash transactions and in absence of any other source of income, the total deposits made in the assessee s saving bank account can be considered as his business turnover which gets support from the observation of the assessing officer for the year under consideration and the AO s observation in assessment of the preceding year where on identical facts, the trading turnover of dairy business of the assessee, cash deposits from cash transactions has been accepted as his business turnover and the profit disclosed in the return was accepted. 13. The ITAT Lucknow Bench in case of ITO vs Shri Vishan Lal (Supra) after considering the deposits and withdrawal made in assessee s bank account upheld the order of CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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