2015 (10) TMI 1622

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pted trading activities for which 5% NP was assessed on total credit of Rs. 17,45,468/- of the same bank account as gross turnover of appellant's business. Ld. CIT (A)-IV, Surat has also erred in confirming addition of peak credit as against business profits of appellant's business." 3. The brief facts of the case are that the assessee was maintaining a Bank account with Bank of Baroda, Areth being account No.2041. Te assessee was asked to explain the source of credit in the Bank account but no explanation was furnished. The A.O. issued show cause notice on 19-11-2009 requiring the assessee to show cause why the credit of Rs. 17,45,468/- in the said Bank account be not treated as unexplained money u/s. 69A of the Act. It was submitted that....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to Rs. 17,45,468/- treating the deposits as turnover. 4. On appeal, the CIT (A) observed that the assessee had not disclosed the bank account No.2041 with Bank of Baroda, Areth ether in the return of income or during the assessment proceedings till the time it was discovered by the department and show cause notice was issued. In the return of income assessee had not sown any agricultural income for rate purpose. This shows that the claim of belief of exempted income and production of related books of accounts incorporating the said bank accounts was an afterthought. The account was never intended to be disclosed was clear from the fact that the interest earned in the bank account was not offered for taxation. The A.O. analysed the bank acc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....efore, the explanation of the assessee that the deposit of Rs. 17,45,468/- in the bank account was the receipts of business of Food grains don e by the assessee during the year was an afterthought and the books of accounts produced before the A.O. were also an afterthought. 8. Therefore, the A.O. was justified in making addition on peak deposits of Rs. 9,62,184/- to the income of the assessee. 9. We have heard the rival submissions and perused the orders of the lower authorities and material available on record. In the instant case the A.O. found that the assessee was having a bank account with Bank of Baroda, Areth being account No.2041 which was not disclosed in the return of income filed by the assessee. The A.O. found that total depos....