2011 (4) TMI 1434

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....s are that assessee is an individual. For the assessment of appeal he filed return of income on 14-06-2006 declaring total income at Rs. 1,00,030/- from manufacturing and trading of jari. Assessing Officer framed the assessment u/s.143(3) of the Income-tax Act, 1961, wherein he made addition of Rs. 32,83,310/- on account of unexplained bank deposit on substantive basis. In the assessment order Assessing Officer observed that assessee failed to furnish bank statement. Therefore a copy of bank statement was directly obtained from the bank. On perusal of bank statement the AO noticed that assessee has made deposit of Rs. 32,83,310/- out of which Rs. 29,67,725/- were made in cash and remaining amount was through cheques. AO treated the whole cr....

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....elation with earlier debit/credit. It might be happened that the cash was deposited in bank other than Surat city in lieu of unaccounted sales of the assessee for which no explanation was given by the assessee. Finally, the Ld. DR pointed out that profit of such unaccounted business was also not taxed. Since the assessee was not co-operating during the course of assessment proceedings, the entire deposits appearing in the bank account are to be considered as unexplained cash credit in the hands of the assessee. To sum up, Ld. DR contended that addition of Rs. 32,83,310/- made by Assessing Officer be restored. 5. After hearing the Ld. SR-DR we have carefully going through the order of authority below. It is pertinent to note that before L....