2015 (8) TMI 1441

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ainst the order passed by the Assessing Officer under sec. 143(3) of the Act for assessment year 2010-11. 3. Brief facts of the case are that during the course of assessment proceedings, the Assessing Officer found that the assessee made cash deposits on various dates during the year, totalling to Rs. 53,13,450/- in the Union Bank of India, Mapusa, Goa. The assessee submitted that cash deposits are purchase and sale proceeds of retail business and accordingly filed a revised return declaring additional income of Rs. 16,13,259/- which was shown under the head 'income from other sources' under sub-head 'other income'. This was computed by the assessee being profit at the rate of 8% Rs. 4,70,055/- and unexplained investment in the business ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....proof regarding any business or trade being carried out. He observed that the manner in which the deposits and withdrawals have been made does not indicate any trade or business. The bank account reveals that the cash has been deposited nearly on daily basis or every 2-3 days in amounts of thousands viz Rs. 10,000/-, Rs. 32,000/-, Rs. 20,000/-, Rs. 50,000/-, Rs. 12,540/-, Rs. 5,360/- etc. The total deposits after 20-25 days is withdrawn in a single instance in lakhs leaving a meagre balance in the bank account. In absence of any evidence given by the assessee regarding his business of iron and steel being carried out and also the fact that the business of sale and purchase of iron and steel has not been disclosed to the sales tax department....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....order of the Principal Commissioner of Income Tax. 8. After considering the rival submissions and perusing the material available on record, we find that even before us, the Authorized Representative of the assessee has not filed any evidence to the fact that the assessee was carrying on retail business in steel. When asked by the Bench, he expressed his inability to do so. In absence of the same, in our considered view as the source of deposits in the bank account could not be established by the assessee to be out of carrying on retail business in steel by bringing any material on record, the Principal Commissioner of Income Tax was fully justified in treating the entire deposits made in cash of Rs. 58,75,690/- as unexplained deposits o....