2018 (9) TMI 1403

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....the appeal attributed to illness of the wife of the assessee which was supported by the medical certificates and the copies of discharge certificates from the hospital. We have considered the submissions made by the Ld.A.R and the objections of the DR and hold the there is a reasonable cause for delay in filing the appeal accordingly the delay is condoned. 2. The assessee is an LIC agent and during the assessment year the assessee filed return of income declaring total income of Rs. 8,76,440/-. The Assessing Officer (AO) found that the assessee has made the deposits in the savings bank account to the extent of Rs. 40,27,000/- as under : Name of the Bank Account Number Amount of cash deposits (a) ING Vysya Bank Ltd. 118630 ....

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....nt. The assessee's alternative plea to consider the peak credits as addition was considered by the Ld.CIT(A) and directed the AO to consider the peak credit of South Indian Bank and ING Vysya Bank for the purpose of addition. Accordingly, the appeal of the assessee on this ground was partly allowed by the Ld.CIT(A). 4. Aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before this Tribunal. During the appeal hearing, the Ld.AR submitted that the assessee is having three bank accounts in the banks i.e. AXIS bank, South Indian Bank and ING Vysya Bank Ltd. The assessee argued that the bank accounts are considered to be declared since the assessee is not maintaining the books of accounts, thus argued that there is no bank acc....

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.... of the cash flow statement reveals that the assessee has made the cash deposits and also withdrawals and stated to be made the redeposit in the bank account out of the withdrawls, without giving explanation for the source of the deposit and the destination of the withdrawal. The purpose of the withdrawal, whether the amount was spent or not? was not explained by the assessee. It is observed that the assessee claimed the source for deposits out of small amounts of withdrawals also which is not reliable and not the practice of a customer of the bank to withdraw the small amounts without the requirement for expenditure. Therefore, the assessee required to explain the source of each credit and the destination of debit independently. Every debi....