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TMI Blog2023 (10) TMI 767X X X X Extracts X X X X X X X X Extracts X X X X ..... g aggrieved by the said orders he ought to have filled the appeal on the basis of following facts. That the assessee is an individual who is involved in business of electronic goods and he derives his income from profit and gains of business. In the original assessment the assessing officer made an addition of Rs. 16,13,020/- to the income of the assessee for the A.Y. 2012-13 to which assessee filed the appeal before the Hon'ble CIT (Appeals)-1, Bhopal which the CIT(A) erred and rejected the claim of the assessee and an order was issued on 27-08-2021. 1. That the learned CIT(A) erred in considering the cash deposit of Rs. 16,13,020/- as unexplained money under section 69A of the Act. Section 69A says where in any financial year th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lready been considered while calculating net income and is not an unexplained money. 2. That the cash deposited was from the sale proceedings of the business which were included in turnover and were already a part of income of the assessee and therefore considering the cash deposits in State bank of India as unexplained money result in double taxation of the same income which is incorrect. This amount of cash deposit was accounted for in the books of accounts of the assessee which can be seen in the books attached and therefore the contention of the assessing officer that the cash deposited was not disclosed in the balance sheet of the assessee is incorrect. 2. The assessee is individual and proprietor of M/s Neeraj Electronic engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concern. Such bank account was utilized by the assessee to facilitate the cash collection made from the debtors of outstation and nearby areas of Bhopal. The cash collection so made by the assessee from such outstation debtors were deposited in this bank account and were immediately withdrawn, from time to time for utilizing the same in the regular course of business activity. The remaining cash as per the regular cash book was deposited by the assessee from time to time in the primary bank account of his proprietorship concern maintained with OBC. He has explained that the reason of utilizing the Saving Bank Account with SBI for business transaction is the availability of branches and ATMs of State Bank of India in sub-urban and rural area ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y reflected in the cash book and cash flow statements. Therefore, the source of cash deposit has been duly explained by the assessee as turnover of the assessee. He has relied upon the decision of the Mumbai Benches of the Tribunal in case of Jaspal Singh Sehgal vs. ITO 83 taxmann.com 246 as well as decision of Ahmedabad Benches of this Tribunal in case of Sudhirbhai Pravinkant Thaker vs. ITO 88 taxmann.com 382. Thus, the Ld. AR has submitted that cash withdrawal prior to cash deposit be considered as the source of the deposit and therefore, only peak credit can be taken for addition if any. Alternatively, the Ld. AR has pleaded that only GP rate may be consider as income on undisclosed turnover. 4. On the other hand, Ld. DR has submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the deposit made in the both bank accounts it cannot be conclusively determined that the deposit made in the SBI account has been declared by the assessee as his turnover. Accordingly, in the facts and circumstances of the case when the frequent deposits and withdrawal transactions are made in the Saving Bank Account throughout the year and almost nil balance was available as on 31.03.2012 then the deposit in the Saving Bank Account in our considered view represents turnover of the assessee. Since the assessee has not disclosed this bank account in the return of income, therefore, deposit in the saving bank account is considered as undisclosed turnover and GP rate on the said turnover would be added to the total income of the assessee ins ..... X X X X Extracts X X X X X X X X Extracts X X X X
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