2018 (6) TMI 99

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.....08.2015 for the assessment year 2010-11. 2. The substantial questions of law that arises for consideration are as under: 1. Whether the respondent erred in considering that the income assessed by the assessing officer was on the basis of the peak profit and therefore the highest profit was considered for collection of tax by the assessing officer and the same cannot be termed as erroneous? 2. Whether the impugned order passed by the respondent is in violation of the amended provisions of Section 263 of the Income Tax Act, 1961? 3. Whether the respondent and the Tribunal have committed an error by interfering with the order passed by the AO based on investigation and enquiry? 3. The appellant-assessee is carrying on business ....

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....d that an order shall be deemed to be erroneous in so far as it is prejudicial to the interest of the Revenue, if the order is passed without making inquiries or verification which should have been made. The assessing officer while concluding the assessment under Section 143(3) of the Act had verified the cash deposits of Rs. 53,13,450/- made on various dates with Union Bank of India, Mapuca-Goa during the relevant assessment year. On considering the explanation offered by the assessee as regards sources for the above cash deposits and accepting that these transactions relates to business done and the cash deposits relates to sales realization, concluded the assessment. In such view of the matter, it cannot be treated as an erroneous order ....

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....ed counsel for the parties and perused the material on record. 7. It is in view of the assessee's case being selected for scrutiny, the assessing officer sought for the verification of the financial transaction i.e. bank deposits. For which the assessee has taken a contention that he was carrying on retail business in iron and steel, but failed to substantiate the same. The business of sale and purchase of iron and steel products is not declared to Sales Tax Department and no tax is paid, no balance sheet, profit and loss or income and expenditure account is maintained, no evidence of business is placed on record except the bank statements. The modus operandi of the assessee in making the deposits and withdrawing the same indicates that ....