9911796707
TMI Blog2022 (9) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... 09.2021 which is arising out of the assessment order framed u/s 143(3) of the Act dated 21.12.2017. 2. Brief facts of the case are that the assessee is an individual. Return of income for AY 2015-16 was filed manually declaring income of Rs. 2,68,740/- on 30.03.2016. The case was selected for scrutiny through CASS for the reason "large value of share or unit reported in security transaction tax return which is settled otherwise than by the actual delivery or transfer (STT Code-3)." The assessee is engaged in the business of trading of rice and paddy. Notices u/s 143(2) & 142(1) of the Act were served on the assessee. During the course of assessment proceedings, ld. AO noticed that the assessee is holding a savings bank account with the IDB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wals because if the deposit was to come from techno-shares private limited then it would have come by way of cheques as the broker would not be making payment to a party in cash. Furthermore AO has stated that this bank account has not been disclosed by the Appellant in his ITR. The AO has clearly established that neither in this bank account nor in the other bank account maintained by the Appellant, there is any evidence of payment on purchases for his trading business. From the facts of the case it is clear that the entire deposit in cash has been used to make payment to Techno-shares and stocks private limited. The transaction between the Appellant and Techno shares, and stocks private limited is unidirectional i.e. only payments have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition since there have been circulating deposits and withdrawals." 5. Ld. Counsel for the assessee vehemently argued referring to the written submissions and also referring to the additional grounds that additions should have been made only for the peak credit and not the entire deposits. It was also stated that the assessee files the return of income u/s 44AD of the Act on presumptive basis, but, ld. CIT(A) has not given any cognizance to this aspect. Secondly, it is pleaded that the source of said deposits is partly from the business income and partly from money received from persons who have traded in shares through appellant's broker. Thirdly, it is pleaded taking support from judicial pronouncements that addition should be made on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the credits in the said bank account which are not explained. The assessee is claiming that the source of the said deposits i.e. cash and cheque is partly from loans taken from various friends and relatives, partly from sale proceeds of business carried on by him which have been diverted to his bank account and part of the credits is on account of the money taken from relatives and friends to be invested in stock market. Though the assessee was required to file complete details of such friends and relatives and also the details of sales but the same has not been done at any stage. 10. Under this situation to end the controversy coupled with being fair to both the parties, the only way out left is to sustain the addition only to the extent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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