2019 (4) TMI 1028

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....mmerce. 2. Briefly the facts of the case are that return of income declaring income at Rs. 1,82,070/- was filed by the assessee on 31.07.2012. In this case, AIR information was received about the assessee having made cash deposits of Rs. 15,37,400/- and Rs. 11,61,500/- in his S.B. Account with Oriental Bank of Commerce and Allahabad Bank respectively. The same was not disclosed in his return of income. Hence, the case was reopened and notice under section 148 was served upon the assessee. The assessee submitted that he was engaged in business of retail trading of cotton fabrics and the cash deposits in his bank accounts were out of sale turnover effected during the financial year and payments received from outstanding debtors. However, t....

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.... as preceding assessment year, details of turnover, details of sales made in the year under appeal and preceding assessment year along with purchases, supported by sale bills, purchase bills, cash flow statement and summary of the sundry debtors and creditors. The A.O. never asked for any documents from the assessee and also failed to verify the documents filed by assessee. It was submitted that since assessee filed return of income under section 44AD of the I.T. Act, 1961, therefore, he was not required to maintain books of account. The assessee, therefore, explained that both the additions are wholly unjustified. The Ld. CIT(A), considering the explanation of assessee, deleted the addition of Rs. 11,61,500/-. The Ld. CIT(A), however, conf....

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....ming from earlier years which pertains to business activities of the assessee. PB-19 is reply filed before A.O. along with complete details of sales, purchases and debtors. PB-87 is details of the debtors. PB- 88 onwards are the confirmation of the accounts of the debtors. PB-6 is cash flow statement. Learned Counsel for the Assessee submitted that all the above documents were filed with the return of income and the income tax return gives an option to the assessee to disclose only one Bank Account. Since, interest of both the Bank Accounts have been disclosed to the Revenue Department, therefore, it cannot be said that Bank Account have not been disclosed to the Revenue Department. He has, therefore, submitted that addition is wholly unjus....