TaxTMI 
TaxTMI 
TaxTMI 
2017 (4) TMI 294
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....holding that the deposits of Rs. 55,59,989/- were not unexplained credits but represented trading receipt. ii. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal. 3. The facts in brief are that the assessee filed return of income on 11/02/2009, declaring total income of Rs. 3,46,100/-, which consist of salary income of Rs. 3,00,000/-, capital gain of Rs. 19,811/- and interest income of Rs. 1,26,287/-. The return of income was processed under section 143(1) of the Act on 17/12/2009. During the course of assessment proceeding for AY 2009-10, the Assessing Officer called a copy of bank statement from the ICICI Bank and on perusal of the same, he found deposits of Rs. 55,60,287/- for the financial year corresponding to the assessment year under consideration. The deposits included cash deposits of Rs. 19,41,239/-. Since the returned income could not justify the deposits of Rs. 55,60,287/-, the case was reopened under section 147 of the Act, by way of issuing notice under section 148 of the Act. In response to the notice, the assessee filed return of income on 05/11....
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....ear under consideration is different from the bank account considered in AY 2009- 10. He submitted that assessee has filed return of income under presumptive Scheme of computation of income under section 44AF of the Act, which is available for retail trade. The Ld. DR further submitted that money was deposited in bank account it outstations like Jaipur, Bareilly, Amritsar, Ludhiana etc., and which is not possible in case of retail trade. According to the Ld. Authorized Representative, the onus was on assessee to satisfy that it was covered under section 44AF of the Act. He further submitted that the assessee has not enclosed the documents alongwith the return which were required in terms of explanation (f) to section 139(9) of the Act. 6. The Ld. Authorized Representative, on the other hand, prayed that neither by the Assessing Officer, nor by the Ld. CIT-A or even the Revenue in its ground has alleged that fact for assessment year 2009-10 were not identical to facts of the year under consideration. It was stated that bank account in respect of which addition has been made in the instant year, was also under consideration in assessment year 2009-10. It was also submitted that all ....
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....der: Month Total Deposits (Rs.) Total Deposits No . of Deposits Maximum Deposits Minimum Deposits Average April,2008 15,04,590.00 49 1,50,000.00 4,000.00 77,000.00 May,2008 9,13,520.00 45 49,000.00 4,700.00 26,850.00 June,2008 11,71,705.00 37 2,00,000.00 2,800.00 1,01,400.00 July,2008 8,41,178.00 22 1,00,000.00 9,000.00 54,500.00 August,2008 5,96,925.00 16 50,050.00 18,000.00 34,025.00 September,2008 4,85,975.00 16 47,650.00 6,000.00 26,825.00 October,2008 3,65,625.00 12 40,850.00 10,000.00 25,425.00 November,2008 3,28,310.00 10 53,250.00 5,200.00 29,225.00 December,2008 6,59,515.00 19 90,000.00 5,800.00 47,900.00 January,2009 9,88,270.00 29 50,000.00 11,570.00 30,785.00 February,2009 7,49,480.00 25 84,640.00 8,000.00 46,320.00 March,2009 11,02,500.00 31 1,00,000.00 1,360.00 50,680.00 Total 97,07,593.00 311 10,15,440.00 86,430.00 5,50,935.00 6.3 From the aforesaid table, it is apparent that there are 311 deposits and the minimum deposit is Rs. 1,360/- in the month of March, 2009 and maximum deposit is of Rs. 2,00,000/- in the month of June, 2008. Further the average deposits range ....
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.... of deposits, it can be reasonably concluded itself that there is merit in the claim of the appellant that such deposits are not pure cash credits being loans or advances raised by the appellant. There is no dispute that appellant has adequate expertise in the business of chemicals since he is deriving salary from his father who is engaged in the business of chemicals. The statement of the appellant dated 28.6.2011 and 7.12.2011 support the claim of the appellant that deposits are in the course of business carried out by the appellant. The Assessing Officer has regarded the deposits as unexplained cash credit under section 68 of the Act on the ground that the following up with the persons from whom deposits have been received is a time consuming and laborious process and therefore, in view of the fact that the assessment was getting time barred by limitation, further efforts to identify the nature of credits are not possible. It is thus apparent that despite the request of the assessee, vide letter dated 12.12.2011 to make adequate enquiries, the Assessing Officer has not brought out any material to rebut explanation of the assessee. In such circumstances, the explanation tendered ....
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....oceedings. It is a matter of record that two statements of the assessee have been recorded, affidavit was filed and replies have been furnished during the course of assessment proceedings. Thus, it is a case where assessee has tendered an explanation and such an explanation has not been found acceptable and therefore, the matter is before us and it is not a case where the assessee has evaded assessment proceedings. So far as the argument that assessee has not been able to produce evidence in the shape of bills or for that matter, books of accounts to support nature of the deposits, that fact cannot be a ground to assume that the assessee has stonewalled enquiries. On the contrary, the Assessing Officer himself has admitted that it is time consuming and laborious process to conduct enquiry and he has chosen not to conduct enquiry and that fact would overlook other factors which assessee has highlighted before us to establish that the deposits represents trading receipts in the course of business of the appellant and therefore, income has to be computed only by applying the rate of profit on the total number of deposits in the bank account of the appellant. It is also a matter of rec....
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....Department by bringing any positive material on record. 9. The Ld. DR has contended before us that facts for assessment year 2009-10 and facts of the instant year are not identical. However after having examined the assessment order, we are unable to accept the above contention. The AO had initiated the proceeding under section 147 of the Act on the basis of the assessment proceeding for assessment year 2009-10. Further while making the addition in the year under consideration, the AO has not recorded any independent findings or observation but has referred to investigation carried out during the assessment proceeding for assessment year 2009-10. Even the Ld. DR has not placed on record any material after having been granted time to support the contention that facts for assessment years 2008-09 and 2009-10 are not identical except the fact that assessee in the return of income filed, declared profit under presumptive scheme of taxation under section 44AF of the Act and the documents as required under explanation (f) to section 139(9) of the Act were not filed. In our opinion, the issue before us is whether the cash deposits in bank account are the sales receipt of the business car....