2014 (8) TMI 753

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....sue are that assessee was holding a bank account with ICICI Hanamkonda Branch with Account No.020101506384 wherein cash and cheque deposits to the tune of Rs. 77,33,902 were found to be made and A.O. was of the view that this account was not disclosed. Assessing Officer issued show cause notices under section 143(2) and 142(1) on various dates and the Ld. A.R. was directed to produce the information called for vide notice under section 142(1). Ld. A.R. failed to produce the same and hence, A.O. proceeded to complete the assessment under section 144. A.O. brought to tax the total deposits of Rs. 77,33,902, i.e., cash deposits of Rs. 53,02,326 and cheque deposits of Rs. 24,31,577, to tax by treating them as unexplained income of the assessee.....

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....band prove that the amounts of deposits in the bank account does not belong to her. It was stated by the Assessing Officer that assessee's husband Sri. V. Raji Reddy had filed the return of income for the AY 2009-10 on 27.3.2012 admitting total income of Rs. 1,45,250/- after claiming deduction u/s.80C. It was further stated that a perusal of purchase/sale registers drawn for the period from 01.04.2008 to 31.3.2009 and on comparison with bank transactions do not tally with the entries made in the register. Further there were ATM/Cash withdrawals on various dates for different amounts and the onus to prove the same lies with the assessee's husband to the effect that all these deposits and withdrawals belong to the business of Sri. V. ....

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....y of confirmation given by ICICI Bank to the effect that transactions in the joint S.B. account during the period 01.04.2008 to 31.03.2009 belong to the assessee's husband Mr. V. Raja Reddy alone. 6. It was further submitted that the assessee's husband had used the bank accounts of ICICI Bank and Andhra Bank for the granite business and the cash/cheque deposits of Rs. 7,33,902 into ICICI Bank do not belong to her only and relate to her husband. The submissions along with the affidavits and the certificate issued by the ICICI Bank indicating that the account was operated by Sri V. Raji Reddy, husband of the assessee, were further forwarded to the Assessing Officer with a direction to examine and submit report on the submissions of the asses....

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....O. is free to conduct further enquiries into the matter and to draw the conclusions and thereafter, initiate appropriate proceedings against the real owners of the credit. 9. Aggrieved, the department is in appeal before us and has filed the following ground . "2. The CIT(A) ought to have upheld the Assessing Officer's decision of treating the amount of Rs. 7,33,902/- as unexplained income of the assessee as the sources for the deposits could not be explained with appropriate evidences and the said bank a/c. was not disclosed to the department". 10. Grounds No.1 and 3 are general in nature and therefore, it need not be adjudicated. On the other hand, Ld. D.R. reiterated the arguments put-forth before the lower authorities and relied on t....