2022 (6) TMI 454

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t of unaccounted income allegedly earned by the assessee as reflected in the undisclosed back account maintained with Bank of Baroda. 2. The assessee, in the present case, is an individual who is engaged in the business as a Civil Contractor. The return of income for the year under consideration was filed by him on 21.09.2015 declaring a total income of Rs.5,54,910/-. The said return was selected for limited scrutiny under CASS and a notice under Section 143(2) of the Income-tax Act, 1961 ("the Act" in short) was issued by the Assessing Officer to the assessee on 20.09.2016. During the course of assessment proceedings, the assessee was called upon by the Assessing Officer to explain the difference of Rs.20,06,800/- in the total sales/rec....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Section 143(3) of the Act, an appeal was preferred by the assessee before the learned CIT(A) challenging the addition of Rs.30,53,371/- made by the Assessing Officer on account of unaccounted income allegedly earned by the assessee as reflected in the undisclosed bank account maintained with Bank of Baroda. During the course of appellate proceedings before the learned CIT(A), the assessee filed additional evidence to support and substantiate his claim that the entries in relevant bank account not only reflected the unaccounted sales/receipts but also the business expenses incurred through the said bank account. The said additional evidence was forwarded by the learned CIT(A) to the Assessing Officer for verification and in his remand repor....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ts. He has pointed out that against the receipt of Rs.30,53,371/- as reflected in the said bank account and treated as income of the assessee by the authorities below, expenditures of Rs.10,97,500/- and Rs.13,53,576/- were incurred by the assessee in cash from the withdrawal made from the said bank account and by cheque respectively. He has contended that after deducting the said expenditure incurred in cash as well as by cheque, the net income that was earned by the assessee as reflected in the transactions made through the undisclosed bank account was only Rs.6,02,295/- and therefore the addition of Rs.30,53,371/- made to the total income of the assessee on this issue is liable to be restricted to Rs.6,02,295/-. The learned DR, on the oth....