AI Drafter 
TaxTMI 
TaxTMI 
2015 (10) TMI 315
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....see was called upon by the A.O. to explain the source of cash deposits aggregating to Rs. 47,86,800 found to be made in his bank account. The assessee however did not comply with the notices issued by the A.O. during the course of assessment proceedings and did not offer any explanation as regards the cash deposits found to be made in his bank account. The A.O. therefore, was left with no option but to complete the assessment exparte under section 144 to the best of his judgment on the basis of the material available on record. In such assessment made vide order dated 30.12.2011, he added the entire amount of Rs. 47,86,800 of cash deposits found to be made in the bank account to the total income of the assessee treating the same as unexplained. 3. Against the order passed by the A.O. under section 144, an appeal was preferred by the assessee before the Ld. CIT(A) and following submission was made in writing by the assessee before the Ld. CIT(A) in order to explain the cash deposits found to be made in his bank account. "The appellant herein is an individual deriving income from small and petty contracts. For the assessment year 2009-10, the total turnover was Rs. 15,02,400 an....
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.... Hyderabad. Universities in which they intend to admit for higher studies. In fact, the Development Credit Bank offers DDs without any commission. The persons concerned have used the appellant's bank account for transferring the amounts to the concerned universities. This clearly indicates that the amount deposited into the bank account does not relate to the appellant herein. The Assessing Officer, however, completed the assessment ex-parte without providing proper opportunity to the appellant and treated all the cash deposits into the bank account of Rs. 47, 86, 800/- as the income of the appellant. In this regard it is submitted that the amount of Rs. 12,27,955 was by way of private miscellaneous works undertaken by the appellant and this was also deposited into the bank account. This amount was also not considered by the Assessing Officer. Further, the Assessing Officer ought to have observed the fact that cash was deposited and on the same day or on the next day DDs were purchased in favour of the relevant Universities which would clearly indicate that the students have deposited the cash into the bank a....
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....posited on various dates, the amounts belonging to them and the appellant facilitated issue of Demand Drafts in Pounds. The appellant submitted a details statement providing intimation like the names of the depositors, amounts deposited, Demand drafts and the amount in Pounds. The appellant also submitted copies of the Demand drafts obtained from the DCB Ltd., by the appellant herein. A certificate issued by DCB Ltd., was also submitted. As the above material could not be filed before the Assessing Officer, the appellant submitted such details as an additional evidence. When the said additional evidence was forwarded to the Assessing Officer and the Addl. CIT they commented that such additional evidence need not be admitted. In this regard, the appellant humbly submits that as stated above the deposits were made into the bank account by various persons prosecuting their studies in foreign universities. To ascertain the details from the persons concerned, it took substantial time and in the meantime the Assessing Officer completed the assessment ex-parte. It can be seen from the certificate issued by the Developme....
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....withdrawn on 02/04/2008. The same was deposited again on various dates. Similarly, the appellant withdrew an amount of Rs. 50,000/- on 07-07-2008 and Rs. 35,000/- on 18- 07-2008 which were also available for re-deposit. Therefore, the appellant humbly submits that the Assessing Officer is not justified in making any addition on this account. In the circumstances, the appellant requests the Hon'ble Commissioner of Income-Tax (A) to kindly allow the appeal as prayed for." 3.2. The Ld. CIT(A) found the explanation offered by the assessee as regards the cash deposits found to be made in his bank account as acceptable and deleted the addition of Rs. 47,86,800 made by the A.O. for the following reasons given in paragraph 7.1 and 7.2 of his impugned order : "7.1. From the details furnished, it is clear that the students utilized the bank account of the appellant for purchase of the Demand Drafts and the said amount cannot be considered as unexplained or as the income of the appellant. I also find from the return of income filed that the gross contract amount received was Rs. 14,62,790/-. If the amount deposite....