TaxTMI 
TaxTMI 
2020 (7) TMI 626
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....ee in the present case is an individual who is employed with Eastern Coalfields Ltd. No return of income for the year under consideration was filed by him either within the time specified u/s 139(1) of the Income Tax Act, 1961 or section 139(4) of the Income Tax Act, 1961. On the basis of information received by him regarding the cash deposits of Rs. 13,81,000/- found to be made by the assessee in his savings bank account with Allhabad Bank, Ukhra Branch during the year under consideration, a notice u/s 148 was issued by the AO to the assessee on 29.03.2018. No return in response to the said notice was initially filed by the assessee. The AO issued letters u/s 133(6) of the Act to M/s. Eastern Coalfields Ltd., the concerned banks where the ....
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.... not for utilisation. He, therefore, held that the explanation offered by the assesssee was neither valid nor logical and treating the cash deposits aggregating to Rs. 15,13,000/- found to be made in the bank accounts of the assessee as unexplained, addition to that extent was made by him to the total income of the assessee in the assessment completed u/s 143(3)/147 of the Act vide an order dated 14.12.2018. 3. Against the order passed by the AO u/s 143(3)/147 of the Act, an appeal was preferred by the assessee before the Ld. CIT(A) and the explanation offered before the AO was reiterated on behalf of the assessee before the Ld. CIT(A) in support of his case that the addition made by the AO by treating the cash deposits found to be made ....
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....ne account gets deposited in another, one may have to refer to the impugned bank accounts. The appellant has three bank accounts. Two of his bank accounts, one at SBI and the other at Allahabad Bank have already been highlighted above. The third account is with PNB in which his salary is credited. The Id. AO has not taken the said bank account for calculating the undisclosed income as the said bank account is disclosed and the sources of deposits in the same are also disclosed. Therefore, the entries and transactions recorded in PNB are not taken into consideration. 8.1 The transactions recorded in the appellant's accounts with SBI and Allahabad Bank have been examined. It is observed that there is no inter relation between the....
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....re primarily in cash or have (presumably) come from FDs. These deposits have certainly not come from the appellant's account with the SBI. The remittances also are towards repayment of loans and towards FDs. I find that there is no inter-bank transfer or deposits in this account as well. The remittances are to specified accounts or destinations and they have never reached the appellant's account with the SBI. In fact, there is no apparent instance of any intra-bank withdrawal and deposit. 8.4 in view of the above facts, I am of the view that this is not a case which merits determination of the peak of credits. The cases relied upon by the appellant are factually different from the present case in as much as in those cases there wer....
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....de from his salary account maintained separately were available with the assessee for making deposits in the relevant two bank accounts, but this factual position was completely ignored by the Assessing Officer as well as by the Ld. CIT(A). He has contended that keeping in view all these cash withdrawals and deposits reflected in in the relevant bank accounts, the addition should have been restricted by the authorities below to the extent of peak credits appearing in the said bank accounts and there was no justification in adding the entire amount of cash deposits found to be made in the bank accounts of the assessee thereby ignoring completely the cash withdrawals made from time to time which were available to the assessee to explain the s....
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....consideration from the bank accounts maintained with Allhabad Bank, State Bank of India and Punjab National Bank respectively. At the same time, there were other transactions involving debits and credits to these three bank accounts of the assessee including the impugned cash deposits of Rs. 15,13,000/-. As far as the transactions involving debits and credits arising from bank transfers are concerned, neither the AO nor the Ld. CIT(A) has raised any dispute about the same. They have treated only the cash deposits aggregating to Rs. 15,13,000/- reflected in the bank accounts of the assessee as unexplained on the ground that the assessee failed to explain the source of the same. As rightly contended on behalf of the assessee before the author....