TaxTMI 
TaxTMI 
2020 (1) TMI 784
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.....Account totaling Rs. 56,60,450/- by way of cash deposits. The assessee had not filed any returns of income for the assessment year 2009-10 and also for the assessment year 2010-11. 5. To verify the source for cash deposits, the respondent Department initiated action under Section 147 of the Income Tax Act, 1961 (for short 'the Act') and issued notice dt.30-03-2016 under Section 148 of the Act to the assessee , which were served on him on 31-03-2016. 6. Notices dt.21-04-2016 under Section 142(1) of the Act were also issued to the assessee. There was no compliance from the assessee either to the notice under Section 148 of the Act or notice issued under Section 142(1) of the Act. 7. Thereafter another notice under Section 142(1) of the Act dt.02-05-2016 was issued to the assessee calling for information, for which also there was no response from the assessee. 8. Due to the non-cooperation of the assessee, a show cause notice dt.06-10-2016 was issued informing the assessee that his case for the assessment year 2009-10 and 2010-11 had been taken up for consideration and the assessee was directed to file information for completion of assessment and to show cause why the ent....
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.... from agricultural income, cannot be accepted. 15. Therefore, for the assessment year 2009-10, he held that an amount of Rs. 53,78,700/- is to be treated as income from unexplained sources and for the assessment year 2010-11, Rs. 26,60,450/- is to be treated as income from unexplained sources. Tax and penalty were also levied thereon. The order dt. 1-3-2018 of the CIT (Appeals) 16. This was questioned by the assessee before the Commissioner of Income Tax (Appeals)-1, Hyderabad vide Appeal No.0239/CIT(A)- 1/Hyd/2016-17/2017-18 and Appeal No.240/CIT(A)-1/Hyd/2016- 17/2017-18. 17. It was contended before the Appellate Authority by the assessee that Assessing Officer erred in holding that the aggregate of the deposits made into the Bank Account of Rs. 83,78,700/- for the assessment year 2009-2010 and Rs. 56,60,450/- for the assessment year 2010-11 represents the income of the assessee; that there were substantial withdrawals during the year under consideration which explain the deposits made into the Bank Accounts; that the Assessing Officer should have considered the fact that peak credit in the Bank Account is much lesser and the entire amount of peak is less than the agr....
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....ed the Bank Account statements and observed that the assessee was making cash deposits and also making corresponding cash withdrawals and therefore the contention of the Assessee that the gross receipts from the agricultural operations were deposits, withdrawn and re-deposited cannot be brushed aside in toto. The Tribunal then referred to the action of the Assessing Officer in relying upon the statement of the assessee recorded during the course of search wherein he has stated that he is also doing real estate business and cash deposits were receipts of such business as well. It therefore accepted that some of the deposits would be from real estate business while others are cash withdrawals made earlier. It therefore partly allowed the appeals by treating 50% of the deposits which have been treated as income from other source as unexplained and the balance 50% to be part of agricultural income (in addition to Rs. 30,00,000/- already treated as agricultural income by the Assessing Officer) which were re-deposited into the bank account. The present Appeals 24. Assailing the same, these appeals are filed. 25. Learned counsel for assessee strenuously contended that the approac....
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....e to deposit in the Bank Accounts for the assessment years 2009-10 and 2010-11. He also stated that he was doing real estate business at Hyderabad and was entering into agreements of sale and by keeping certain margin, he was selling the same to others. Though he stated that he was getting an average income of Rs. 4,00,000/- p.a. from the real estate business since 2010, and he claims to have done small ventures at Uppal Bus Depot and promised to furnish details, there is nothing to show that he did furnish any details. Therefore, the cash deposits, which are admitted by him to be from real estate business or rental income, have also to be taken into account. 30. It was the duty of the assessee to disclose these aspects before the Assessing Officer or the CIT (Appeals)-1, Hyderabad or the Tribunal because these are within his exclusive knowledge. Having admitted that he was also doing real estate business and was also having rental income, and by not furnishing any details of the same, he cannot blame the Assessing Officer or the Tribunal for drawing conclusion that his source of money for making deposits other than agricultural income, is the real estate business. 31. No dou....