2018 (9) TMI 2093

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....e addition of Rs. 14,76,614 on account of alleged unaccounted income. 3. Facts apropos of this ground are that the AIR information revealed that the assessee has had bank account with Yes bank Ltd. in which total deposits were at Rs. 25,82,079 including cash deposits of Rs. 12,50,000. It was explained that the transaction in this bank account relates to business trading which were not reflected in her books of accounts. Further, these deposits include cheque issued but returned un paid by the bank hence, same should be reduced from total deposits. Thus, total deposit were at Rs. 18,32,079 on which 5% net profit should be assessed to tax which comes to Rs. 91,600. However, the AO after reducing the same made addition of Rs. 18,32,079 o....

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....ned proper books of accounts or at most the addition can be made to the extent of peak credit and entire deposits in the alleged bank account cannot be treated as unaccounted income. 6. Per contra, Learned Departmental Representative submitted that the explanation of the assessee that only 5% of deposits should be treated as business income is not found acceptable as the assessee has not given details of business transactions carried out by her. Therefore, CIT (A) was justified in giving his findings. 7. We have heard the rival submissions and perused the relevant material on record. We find that the assessee is a salaried person and deriving salary from Kalyani Multilink Pvt. Ltd. The deposits appearing in the bank account under consider....

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....ts are that the assessee has obtained a loan of Rs. 2 Lakh for her husband Shri Keyur C Shah of which confirmation, copy of return of income, copy of bank pass book and bank statement were filed. However, the AO noted that the bank statement of Shri Keyur C Shah showed that there is cash deposits of Rs. 2 Lakh before issue of cheques to the assessee and the income shown by her husband is only at Rs. 98,324 hence, he has no capacity to give loan. Therefore, addition of Rs. 2 Lakh was made in the hands of the assessee. 11. In appeal before CIT (A), it was submitted that the loan creditors was assessed to tax and loan was given out of his personal savings, hence, addition under section 68 was not justified. However, CIT (A) observed that the ....