TaxTMI 
TaxTMI 
2016 (9) TMI 754
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....IT(A)) u/s 250 of the Income Tax Act, 1961 (the Act), your appellant prefers this appeal, among others, on the following grounds of appeal, each of which is without prejudice to, and independent of, the other: 1. That on the facts and in the circumstances of the case and in law the Ld CIT-A erred in confirming the addition of cash deposit in bank accounts with Oriental Bank of Commerce and HDFC Bank respectively amounting to Rs. 29,04,050 and Rs. 15,72,750/- totalling to Rs. 44,76,800/- ignoring the faultless plea of appellant to be assessed either as per application of reasonable profit rate to subject cash deposits being cash sales from unaccounted business activity or assessment as per PEAK theory as there are regular cash withd....
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.... law the Ld CIT-A erred in confirming the addition of cash deposit in bank accounts with Oriental Bank of Commerce and HDFC Bank respectively amounting to Rs. 29,04,050 and Rs. 15,72,750 totalling to Rs. 4. That on the facts and in the circumstances of the case and in law the Ld CIT-A erred in confirming the addition of 299,232 on a/ of alleged unaccounted house hold expenses on mere basis of "current level of inflation" and perception for "expenditure required on day to day running of house" without anything more. Relief Claimed i) To delete the addition of Rs. 44,76,800 and direction to be assessed as per reasonable profit rate application or any lump sum addition and/ or peak theory; ii) To hold CIT-A gave perv....
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....the case:- The facts of the case as per assessment order are that AIR information was received that the assessee had deposited cash amounting to Rs. 40,31,000/- in his SB account with Oriental Bank of Commerce, Pushpanjali Enclave and HDFC Bank, Pushpanjali Enclave, Delhi. In response to notice issued by the Assessing Officer (A.O.) balance sheet, profit and loss account and bank statement of Union Bank of India was filed. As per these details, sales of Mixi and Spare parts have been shown at Rs. 1,79,545/-. The A.O. deputed an Inspector to the shop of the assessee. On verification it was found that only 33 bills have been issued over a period of 2 ½ years. The books of accounts were not available at the shop. It was claimed that all....
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....ils of quantum of sales, vouchers etc. The assessee was unable to furnish any documentary evidence to support his claim. The assessee has not discharged his onus as regards the identity of seller or purchaser. 2.1. There is no documentary evidence in regard to the claim of the assessee. The A.O. computed the total income at Rs. 59,52,980/- by making an addition on account of unexplained cash deposits of Rs. 44,76,800/- and on account of low withdrawals of Rs. 2,99,232/-. 2.2. On appeal the First Appellate Authority dismissed the appeal of the assessee on the ground that, the assessee has not discharged the burden of proof. Further aggrieved the assessee is in appeal before us. 3. After hearing rival submissions we find that the cla....
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.... from which it is apparent that there are several items of deposits and withdrawals. The Assessing Officer has simply picked up the deposit side of the pass-book and made the addition for all the deposits made in the bank accounts, ignoring that there are several withdrawals also. This course of action adopted by the Assessing Officer in making the addition for all the deposit entries in the bank accounts, has no sanction of law. If there are certain deposits and withdrawals as well and there is nothing in the assessment order to co-relate these withdrawals with any investments made by the assessee, the presumption is that such withdrawals were utilized for making deposits. In such circumstances, the making of addition to the extent of peak....