TaxTMI 
TaxTMI 
2015 (9) TMI 1501
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....ng the addition to Rs. 30,73,348 made by the Assessing Officer on account f unexplained deposits made by the assessee in his bank account with ICICI Bank. 3. Facts of the case in brief are that the assessee, an individual and salaried employee, field his return of ncome for the assessment year 2010-11 on 25.6.2010 declaring a total income of Rs. 7,40,025. Though the return was initially processed under S.143(1), in the course of regular assessment that ens ed, the Assessing Officer inter alia observed that the as per he AIR information, the assessee has made cash deposits into his Savings Bank Account maintained with ICICI Bank to the tune of Rs. 30,73,348 during the financial year 2009-10. When enquired about these deposits, it was expl....
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....ts are in HDFC Bank account of the assessee. He found that all transactions, either deposits or withdrawals, were only in cash. He found that in the matter of 90% of the deposit transactions, the place of deposits was not mentioned, though some of the deposits were found to have been made in Kurnool, Nizamabad etc He further found that the account was very active with multiple transactions, some times with gap of few seconds. When the monies were claimed to be belonging to the employer company, the CIT(A) wondered why the same were not deposited straight into company's account instead of into assessee's own account. He also nursed a dou t as to why in respect of reputed company like Ultratech Cements or rasim Industries with thousands of co....
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....g that the submissions made before the Assessing Officer were incorrect and were made without proper understanding of the facts. The CIT(A) gave the affidavits of the assessee and his Authorised Representative to the Assessing Officer, with a direction to verify all the issues and submit the report. In response, the Assessing Officer submitted her remand report on 31.10.2014, stating inter-alia as follows a) That a letter was addressed to the employer, Grasim Industries and the company replied vide letter dated 27.6.2014 stating that as per company's rules, payment is remitted either by way of cheque or Demand Draft or through electronic transfer and the appellant, Sri Sruesh Kumar Biyani did not collect any money on behalf of the ....
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....operly explained, considering the nature of the transactions, both deposits and withdrawals on daily basis, many times multiple transactions on a single day, and deposits made from different locations like Nizamabad and Kurnool, etc. held the view that the assessee has carried on business, and as full details, like receipts and payments are not maintained, considered it appropriate to estimate the net profit of the assessee at 20% of total cash deposits of Rs. 30,73,348. He accordingly restricted the addition made by the Assessing Officer to 20% and partly allowe the grounds of the assessee on this issue. 6. Aggrieved by the relief granted by the CIT(A), Revenue is in appeal before us. 7. The Learned Departmental Representative, stron....