2016 (3) TMI 74

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.... (Appeals) has erred in confirming the addition of rsRs. 35,12,500/- towards unexplained cash deposit under section 68 of the Act. 3. Brief facts of the case are that the assessee is the Managing Director of M/s. Sree Annapoorna Departmental Stores Pvt. Ltd., filed his return of income on 15.09.2011 declaring his income as Rs. 14,78,288/- . Subsequently, the case was taken up for scrutiny and assessment was completed U/s.143(3) of the Act wherein in the learned Assessing Officer made an addition of Rs. 41,00,000/- as deemed income under section 68 of the Act. On appeal, the Commissioner of Income Tax (Appeals) confirmed the addition of Rs. 35,12,500/- in respect of cash deposits made by the assessee. Aggrieved by the order of the learned....

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.... is not verifiable being no verifiable details have been furnished by the assessee. So the amount of Rs:41 Lakhs credited in his various savings bank accounts is added as deemed income u/s 68 of the Income Tax Act, 1961 and" taxed accordingly". Surprisingly, the Assessing Officer in his order has only discussed about the cash deposits in HDFC Bank amounting to RS.27 Lakhs, as stated above. There is no mention of cash deposits in any bank account of the assessee in the assessment order. The Assessing Officer only concluded that the amount of Rs. 41 Lakhs was without any details. 9. On going through the bank account details of HDFC and Dhanalakshmi Bank produced by the Authorized Representative, it could be seen that there were cash ....

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....t of Rs. 9 Lakhs made in HDFC Bank. The appellant submitted that he has withdrawn cash on 07.10.2009 and 16.12.2009 from HDFC Bank Current A/c of Smt. S. Jayanthi. However no details of bank account were filed to substantiate the explanation. Hence this cash deposit is also to be treated as unexplained cash deposit. 12. On 31.07.2010 there was a cash deposit of Rs. 5 Lakhs in HDFC Bank. The Authorized Representative submitted that drawings were made on 05.07.2010 and Rs. 5 Lakhs from HDFC Bank, and the same was explained as the source for cash deposit. However from the Bank Account, it was in the name of Shri N.P. Mani, cheque' paid for a sum of Rs. 5 Lakhs. The appellant's Authorized Representative did not file any details....

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....e submitted that Rs. 1,50,000/- advance paid for land purchase during 14.05.2008 received back and deposited along with Rs. 45,000/- received from Smt. S. Jayanthi. However, no evidence could be produced for the same. This amount is confirmed as unexplained cash deposit. 15. On 26.10.2010 there was a cash deposit of Rs. 1,17,500/- made with Dhanalakshmi Bank. The Authorized Representative submitted that Rs. 75,000/- was withdrawn from Dhanalakshmi Bank on 21.08.2010 and Rs. 44,000/- was withdrawn on 16.12.2009 from HDFC Savings Bank Account. However, no evidence was filed regarding this withdrawal. Hence this amount is confirmed as unexplained cash deposit. 16. Considering all the above cash deposits, the total amount of R....