Case remanded for further examination as appellant's cooperative society president affirmed cash deposits origin. Lower authorities criticized for not verifying society sales. Appeal allowed for statistical purposes, fresh assessment directed.

The tribunal remanded the case back to the assessing officer for further examination as the appellant, an employee of a cooperative society, provided an affidavit from the society's president confirming that the cash deposits in question were from society receipts. The tribunal criticized the lower authorities for not verifying the sales recorded in the society's books and the appellant's explanation. The tribunal allowed the appeal for statistical purposes, directing a fresh assessment to verify the source of the cash deposits.

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Issues:
Assessment of unexplained cash deposits in bank accounts for A.Y. 2013-14.

Analysis:
The appellant, an individual, filed an appeal against the order of CIT(A)-1, Hyderabad regarding the assessment year 2013-14. During the assessment proceedings, it was noted that the appellant received a salary from a cooperative society and declared income from long-term capital gains. The assessing officer (AO) observed significant cash deposits in the appellant's bank accounts, amounting to Rs. 86,83,000, with withdrawals of Rs. 24,72,000, resulting in unexplained cash deposits of Rs. 62,11,000. The appellant claimed that the deposits were sale receipts from a society and provided an affidavit from the society's president to support this claim. However, both the AO and CIT(A) did not accept this explanation and made the addition of Rs. 62,11,000 as unexplained cash deposits.

Upon review, the tribunal found that the appellant is an employee of the cooperative society and submitted an affidavit from the society's president confirming that the deposits were from society receipts. The tribunal noted that this affidavit was not questioned by the revenue authorities. Consequently, the tribunal opined that the CIT(A) should have sought a report from the AO to verify the sales recorded in the society's books and the appellant's claim regarding the source of the deposits. Therefore, the tribunal decided to remand the issue back to the AO for further examination in accordance with the law.

In conclusion, the tribunal allowed the appellant's appeal for statistical purposes and directed the AO to conduct a fresh assessment to verify the appellant's contentions regarding the source of the cash deposits from the cooperative society.

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