2015 (12) TMI 120

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.... income of the assessee. 3. After hearing both the parties, we find that during assessment proceedings it was noticed by the Assessing Officer that assessee is deriving income from running of a boutique in the name of M/s Infinite Boutique and return was filed u/s 44AF and no books of account were maintained. It was further noted that assessee has made cash deposits of Rs. 12,12,000/- in the Saving Bank Account with Centurion Bank of Punjab which was later merged with HDFC bank. On an enquiry regarding the sources of deposit, the assessee gave the following reply vide letter dated 7.12.2010. "... we had sold a piece of land in Sector 9, Ambala for a sum of Rs. 10,00,000 (Rs. Ten lacs only) in Sept. 2007. It has also been stated ....

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....has failed to prove that the cheque was deposited by her in SBI to get the cash. Moreover, there is no cash deposit of Rs. 10 lacs in Centurian Bank of Punjab on 14.09.2007. The dates of deposit and the availability of cash do not tally either for sale of plot or gross receipts of boutique. The appellant has failed to explain the entries of cash deposits in her bank account. Therefore the appellant has failed to provide NEXUS between the cash availability and Bank deposits. As a result, the addition of Rs. 12,12,000/- is confirmed on account of unexplained deposits/ investments in the bank. 6. Before us it was mainly submitted that the assessee was running a boutique wherein sales amounting to Rs. 14.50 lakhs were made. Further, the asse....

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....e that he has encashed the same on the same day. 8. We have considered the rival submissions carefully. We do not find any force in the submissions of Ld. Counsel for the assessee. Even if it is assumed that certificate is correct and bearer of this property Shri Rajiv Kalra issued two bearer cheques No. 684557 and 684558, then how it is possible that assessee has been able to encash the cheque on 14.7.2007 itself. The sale deed is also executed on 14.9.2007 which must have taken sometime. Thereafter assessee got time to exchange the cheques. Assuming for argument sake that this is possible, still the problem is that on 14.9.2007 the assessee has deposited Rs. 4,05,000/- only. The details of cash deposited by the assessee are as under:- ....