TaxTMI 
TaxTMI 
2014 (3) TMI 627
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....ghly unjustified and is not judicious, and is against the law. Addition made u/s. 69 of the I.T. Act at Rs.31,62,300/- by the AO and sustained in the appeal is not called for, same is liable to be deleted. 2. That while making the addition by the AO u/s. 69 of the Income Tax Act and sustained by CIT(Appeals), the authorities below have completely ignored the facts that these deposits represents the sale proceeds of the goods brought to Agra by the assessee to be sell against dalali of which the sale proceeds are deposited in the bank a/c and the payments were also made there from, provisions of section 69 are not applicable in respect of these deposits, explanation offered by the assessee duly substantiate with the evidences should be acce....
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.... deposit in his bank account as per information received through AIR and part of the statement is reproduced in the assessment order. The assessee in his statement explained the main source of income from salary and interest and did not maintain any books of account. Regarding the source of deposit made in bank account with ING Vysya Bank, the assessee explained that it is a saving account of the assessee and entire deposit made therein have been made by him. In F.Y. 2007-08, the assessee deposited cash in this account which was in respect of his small business. Whatever amount was received from the business persons were deposited in this account and the same was returned to business persons from whom goods were purchased on credits and pay....
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....(A), but the ld. CIT(A) did not accept the contention of the assessee and confirmed the addition and dismissed the appeal of the assessee. 4. The ld. Counsel for the assessee reiterated the submissions made before the authorities below and submitted that the deposit in the bank account is out of the money received by the assessee against the sale of ladies suits, which the assessee had brought from Surat and sold them against commission / Dalali at Agra, against which the assessee received payment after sale. The sale proceeds were deposited in the bank account of the assessee from where the cheques were issued and sent to the traders of Surat from whom the goods were taken. The cheques have been encashed. The assessee also filed confirmat....
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....i vs. CIT, 304 ITR 52 on the proposition that entire sale proceeds cannot be recorded as profit or treated as undisclosed income of the assessee and profit rate may be applied to work out the income. 5. We have considered the rival submissions and perused the orders of the authorities below. It is admitted fact that the assessee opened the bank account in question, in which several cash deposits were made on different dates totaling to Rs.31,62,300/-. Copy of the bank account is filed at page 1 to 11 of the paper book. The statement of assessee on oath was recorded at the assessment stage, in which in answer to question No. 8, the assessee explained that during the financial year relevant to assessment year under appeal, he had deposited c....
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....nd the statement before the Addl. CIT find support from the details noted in the bank account of the assessee. On perusal of the details contained in the aforesaid bank account, we find that on credit side there are cash deposits on various dates in the financial year and on the debit side, the payments have been made to different parties through banking channel. Names of the parties and concerned bank through whom the payments have been cleared are mentioned. Thus, the parties are identifiable to whom the assessee made payments from same bank account. Further, the amounts have been deposited time to tome and payments have been made to different parties time to time. The assessee did not maintain any books of account of this business. The d....
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.... account should not have been treated as unexplained investment in the bank account of the assessee. Considering the totality of facts and circumstances noted above and the stand of assessee since initial stage of assessment clearly prove that the amount deposited in the bank account was in fact sale proceeds of the goods, which were sold by the assessee from time to time against whom the assessee issued cheques to various dealers and earned commission. Therefore, the addition u/s. 69 of the IT Act is wholly unwarranted and unjustified in the case of the assessee. Our findings are also supported by the fact that the assessee has shown meager income in the return of income as income from salary and interest. The authorities below, therefore,....