CIT(A) upholds Rs. 35,80,000 cash deposit as deemed income in ICICI Bank due to lack of evidence

The CIT(A) sustained the addition of Rs. 35,80,000 as deemed income of cash deposits in ICICI Bank due to lack of evidence supporting the appellant's explanations. The appellant's contentions regarding deposit sources were found unsupported, leading to the sustained addition by the CIT(A). The case was remanded to the AO for verification of the cash flow statement and withdrawals for construction payments, with instructions to re-examine and decide based on available facts. The appeal was allowed for statistical purposes.

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Issues:
Appeal against CIT(A)'s order regarding cash deposits in ICICI Bank.

Analysis:
The appellant filed a return of income but failed to respond to AO's notices. AO made additions to total income, including a deemed income of cash deposits in various bank accounts. CIT(A) examined facts, deleted certain additions but sustained the addition of Rs. 35,80,000 as deemed income of cash deposits. Appellant explained sources for cash deposits in ICICI Bank, detailing each deposit date and source. AO considered Rs. 22,95,000 as unexplained income. Appellant's explanations for deposits included amounts received from individuals for land purchase. However, lack of evidence, agreements, and cash transactions raised doubts. CIT(A found explanations unsupported and sustained the addition. Appellant contended the cash flow statement covered withdrawals from earlier years, supporting deposit sources. Ld. CIT(A)'s observation on opening cash balance was based on prior years. The case was remanded to AO for verification of cash flow statement and withdrawals for construction payments. AO to re-examine and decide based on available facts. The appeal was allowed for statistical purposes.

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