2017 (7) TMI 1322

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....ank account and a sum of  Rs. 9,40,000/-, which is being  the amount deposited into current account of the assessee.    3. The facts of the case are that the assessee is an individual, earning income from Snack Bar Business and trading in edible essences. Subsequently, the case was selected for scrutiny and notice u/s.143(2) was issued on 14.06.2011. In response, the ld.A.R  submitted  P&L account and Balance sheet of the Assessee. During the assessment proceedings, the AO found that as per the AIR information, the assessee has made cash deposits of  Rs. 41,80,050/- during the year 2008-09 in SB account with M/s.Axis Bank and has made some cash deposits in his current account with ICICI bank and pai....

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....A.R submitted that these deposits were made out of disclosed sales turnover, being so, only GP on it to be estimated. Further, he submitted that in terms of Sec.285A of the Act, annual Information Return should report only the cash deposits in a Savings Bank account for assessment  purposes and any cash deposits into the current account cannot be considered for making assessment  as unexplained investment. 5. On the other hand, ld.D.R relied on the order of lower authorities and submitted that these deposits is undisclosed sales turnover of the assessee and the assessee has already accounted for purchase and expenses relating to these turnovers and hence, the entire amount of unexplained deposits into savings bank account as wel....