2015 (8) TMI 262

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....-06 admitting total income of Rs. 9,15,000 and agricultural income of Rs. 2,00,000 and assessment u/s. 143(3) of Income-tax Act, 1961 was completed on 20/12/2007 by determining the total income at Rs. 19,88,650 and agricultural income at Rs. 2,00,000. Basing on the information received from CIT (CIB) that the assessee made cash deposits to the tune of Rs. 47,58,000 in ING Vysya Bank Ltd., as on 31/03/2005, the case was reopened and assessment u/s. 143(3) r.w.s. 148 was completed on 29/12/2009 wherein an addition of Rs. 77,08,083 was made treating the cash deposits made in ING Vysya Bank as unexplained cash credits u/s. 68 of the Income Tax Act, 1961. 3. Before the CIT(A), the assessee filed written submissions and also additional evidence.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ount to his income. He further contended that the Assessing Officer even added the returned/dishonoured cheque deposits also. The assessee stated that due to the change in jurisdiction in the eleventh hour, the new incumbent having jurisdiction has got very short time and could not provide the required time to the Assessee to submit the necessary papers in support of his claim. He further submitted that all the deposits in the account are confirmed by the customers in their respective affidavits. He requested to delete the addition as the total deposits are made by customers for procuring bitumen on their behalf and as the deposited money does not belong to the Assessee. 5. The assessee contended that even if it is presumed that the Assess....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....th the assessee for some considerable time. Hence the contentions of the AR that in the first category materials were supplied and in the second category the parties got back the monies deposited and as such no business advantage accrued is not tenable. It is an undisputed fact that cash deposits were available to the assessee for considerable period whose turnover is the total of first and second items amounting to Rs. 67,08,000 on which a reasonable return could be around 6% and as such the AO is directed to curb out the income, as spelt out above while giving effect to his order." 7. We heard both parties. The additional evidence along with written submissions was forwarded to the Assessing Officer for his comments, which were received ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....enuineness of the transactions. Hence the assessing officer did not make any negative observation on the genuineness of transactions amounting to Rs. 55,83,000. The assessee submitted regarding deposits made by two persons Sri P. Yadagiri and Sri B. Ranga Rao amounting to Rs. 11,25,000, parties has given affidavit and confirmation letter that they have deposited the amount and the same was returned to them as the material could not be supplied due to non availability of trucks. The Assessing Officer made a comment that the assessee could not substantiate claim of returning of money to the persons. The assessee submitted that the persons who have given amount themselves have deposed that they have got back the money and the assessee submitte....