TaxTMI 
TaxTMI 
2018 (10) TMI 863
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....ddition of Rs. 53,40,510/- u/s 69A of the Income Tax Act, 1961, made by the A.O." 3. Facts of the case, in brief, are that the assessee is an individual and is engaged in the business of wholesale trading of footwear under the style of M/s Ganapati Enterprises. He filed his return of income on 22.12.2014 declaring total income of Rs. 6,66,620/-. During the course of assessment proceedings, the Assessing Officer observed that the assessee has two separate savings accounts maintained with Oriental Bank of Commerce and Karnataka Bank. The Assessing Officer examined the entries in these savings bank accounts and asked the assessee to explain the deposits of cash made therein. It was explained by the assessee that the deposits are transfer of....
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....opriate, and so the total cash deposit of Rs. 5340510/- is unexplained money u/s 69A of the Income Tax Act, 1961 and deserved to be added in the hands of the assessee. Also penalty proceedings is initiated u/s 271(1)(c)." 5. Before the ld. CIT(A), assessee made elaborate submissions. However, the ld. CIT(A) was also not satisfied with the explanation given by the assessee and sustained the addition made by the Assessing Officer by observing as under :- "I have gone through the grounds of appeal, seen the order of the AO and perused the submissions of the appellant. During the appeal hearings the appellant submitted a statement which was furnished during the assessment proceedings in which the cash withdrawals and deposits are ex....
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....read over a period of two months i.e. from 5.7.2013 to 4.9.2013. No conclusive explanation with documentary evidence has been brought on record regarding the withdrawals made from the Karnataka Bank being the same cash deposited in the Oriental Bank saving account over a period of two months. Coming to the explanation that Rs. 30,00,000/- was received on account of sale of property there is no material that the impugned amount received in cash and deposited in the savings bank account represents sale of property by the appellant. The appellant has not been able to explain the sources of the cash deposits in the savings accounts from either as funds transfer from one bank account to another or from the sale proceeds received from the sale of....
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....the case of Sushil Modi vs. CIT Central-II reported in 59 taxmann.com 63 are also relied on. 5. In the light of the above observations the AO has rightly rejected the explanation of the appellant and brought the impugned deposits to tax u/s. 69 A of the Act. Accordingly the addition of Rs. 53,40,510/- u/s. 69A of the Act is confirmed." 6. Aggrieved with such order of the ld. CIT(A), the assessee is in appeal before the Tribunal. 7. The ld. counsel for the assessee strongly opposed the order of the ld. CIT(A) in sustaining the addition made by the Assessing Officer. Referring to page 7 and 8 of the Paper Book, he submitted that the assessee, during the course of assessment proceedings, has given details of the opening cash in ....
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....l available on record. We find the assessee, during the course of assessment proceedings, has shown opening cash balance of Rs. 13,48,852/- and the same has not been disputed by the Assessing Officer. We further find that the Assessing Officer has not considered the sale proceeds of the two properties which were deposited in the bank account as argued by the assessee. Further, the rectification application filed by the assessee u/s 154 is still pending. It is also an admitted fact that as per page 4 of the Paper Book, the assessee has given opening cash balance of Rs. 12,57,796/- as against Rs. 13,48,852/- given at the time of assessment proceedings. Considering the totality of the facts of the case and in the interest of justice, we deem i....