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TMI Blog2025 (3) TMI 762X X X X Extracts X X X X X X X X Extracts X X X X ..... ates for our consideration as to whether the ld. CIT(A) is justified in deleting the addition made by the Assessing Officer under section 69A of the Income Tax Act, 1961 ["Act" in short]. 3. At the outset, we note that the assessee is an individual, conduct his business under the name & stile of M/s. Jayabharath Housing Private Limited. The assessee filed return of income declaring total income of Rs.. 7,72,241/-. According to the Assessing Officer, on an information regarding cash deposits aggregating to Rs.. 1,98,72,352/- in ICICI Bank and Rs.. 93,43,965/- in his Axis Bank account was received from the DDIT, Madurai and accordingly, notice under section 148 of the Act issued. In response to the said notice, the assessee filed return of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to produce the persons to whom the professional work has been carried out, but, the assessee failed to produce any person before the Assessing Officer during the course of assessment proceedings. The Assessing Officer correctly added the said amount in the absence of any explanation offered by the assessee. 6. The ld. AR Shri R. Venkata Raman, C.A. supported the order of the ld. CIT(A). 7. Heard both the parties and perused the material available on record. As rightly pointed out by the ld. CIT(A) in the impugned order that there is no benefit given to the withdrawals and no verification has been done in that regard whether the said withdrawals were utilized for personal benefit of the assessee. The Assessing Officer failed to conduct a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of section 69A of the Act will not apply to the Appellant's case as the assessee is not the owner of the money being the entire cash deposit in the Bank Account. The relevant portion of the submission of the Appellant upon this issue is reproduced as under: "The learned assessing officer ought to have seen that section 60A is not applicable to the facts of the case as the assessee is not the owner of the money being the entire cash deposits in the bank account and in the light of the decision of the Honourable Supreme Court decision in the case of Smt. P K. Noorjahan (237 ITR 570) and should have assessed only the profit and not the turnover." 6.8.14 The undersigned has carefully examined the issue under consideration. The Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision of the Hon'ble Apex Court in the case of the P.K. Noorjahan as reported in 237 ITR 570, wherein it has been held that "The Income-tax Appellate Tribunal (hereinafter referred to as The Tribune) however, held that even though the explanation about the nature and sources of the purchase money was not satisfactory but in the facts and circumstances of the case it was not possible for the assesses to earn the amount invested in the properties and that by the stretch of imagination could the assessee by credited with having earned this income in the course of the assessment year or was ever in a position to earn it for a decade or more." 6.8.17 The A.O. being a Quasi Judicial Authority must be fair enough in arriving any conclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness income reported, there can be no case to treat the Turn-Over (Cash Deposit) as unexplained money as per the provisions of section 69A of the Act. In view of this, the undersigned is of the considered view that the action of the A.O, in treating the entire cash deposit as unexplained in the hands of the Appellant lacks merit. Accordingly, all the grounds raised by the Appellant upon this issue are hereby treated as allowed and the A.O. is hereby directed to delete the addition of Rs. 2,92,16,317/- as unexplained as per the provisions of section 69A of the Act, for the A.Y. 2011-12. 8. On examination of the same, we find that the ld. CIT(A) was of the opinion that there was no evidence brought on record by the Assessing Officer to bri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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