TaxTMI 
TaxTMI 
2023 (1) TMI 528
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....tion filed along with the affidavit and after hearing both the sides, the delay in filing of this appeal is condoned. 3. Facts of the case, in brief, are that the assessee is an individual and is engaged in jewellery business. She filed her revised return of income on 28.12.2015 declaring total income at Rs.3,07,850/- after claiming deduction u/s 80C and 80DDB. The case was selected for scrutiny. The Assessing Officer issued statutory notices u/s 143(2) and 142(1) to which the AR of the assessee appeared before the Assessing Officer and filed requisite details as called for from time to time. 4. During the course of assessment proceedings, the Assessing Officer asked the assessee to explain as to why the cash deposit in the Bank A/c amoun....
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....,000/- u/s 80DDB totaling to Rs.77,152/- for want of evidence. The Assessing Officer accordingly determined the total income of the assessee at Rs.87,04,060/-. 6. In appeal the learned CIT (A) sustained the addition of Rs.83,19,058/- by observing as under: "4.2 I have considered the submissions of the appellant and The findings of the Assessing Officer in the assessment order carefully. Assessing Officer made an addition of Rs.83,19,058/- on the ground that the appellant did not substantiate the source of the cash deposits made in the savings bank account maintained in ICICI Bank, Siddipet inspite of show-cause letter given by the Assessing Officer vide letter dated 22-12- 2017. During the course of appellate proceedings, the contention ....
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...., it cannot be established that the withdrawals showing in different names pertain to various purchases. Also, the contention of the AR of the appellant that the deposits/withdrawals made in the bank account related to purchase and sales is not established. No documentary evidence was either filed before Assessing Officer or before the undersigned in support of claim of purchases and sales, the loans from Sri V.Sravan, past savings. Moreover, while filing reply to the Assessing Officer on 8-12-2017, the appellant claimed that part of the withdrawals were related to purchase of the residential flat, for purchase of the air-conditioner and for developing modular kitchen etc. Therefore, it is inferred that part of the withdrawals made in the b....
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....he action of the Assessing Officer in not allowing deductions u/s 80C an amount of Rs 77,152/- of the I.T act. 4. The learned Commissioner of Income-Tax (Appeals) erred in rejecting the appellant contention an amount of deposits made into the bank account as a turnover of the appellant. 5. The learned Commissioner of Income-Tax (Appeals) ought to have considered the fact that the amounts are redeposited by the appellant. 6. The Commissioner of Income-Tax (Appeals) erred in confirming the action of the Assessing Officer in determining the total income at Rs 87,04,060/- as against the income admitted of Rs. 3,07,850/-. 7. The learned Commissioner of Income-Tax (Appeals) erred in confirming the action of the assessing officer in chargi....
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....d be allowed. 11. The learned DR, on the other hand, strongly supported the order of the Assessing Officer and the learned CIT (A). He submitted that despite sufficient opportunities granted by the Assessing Officer as well as the learned CIT (A), the assessee failed to substantiate the source of such cash deposit made in the Bank A/c. The submission of the assessee that the deposit is out of sale proceeds, previous withdrawals from the Bank A/c and the amount received from the son of the assessee cannot be accepted in absence of any bills/vouchers for purchase and sales. Similarly, there is no confirmation from the son of the assessee and his creditworthiness to substantiate the huge cash of Rs.6,24,500/- remained unexplained. So far as t....
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....evidence to his satisfaction regarding the source of such cash deposit by producing relevant bills/vouchers of gold business which has been upheld by the learned CIT (A). It is an admitted fact that the assessee is not maintaining any books of account and has opted for estimation of profit u/s 44AD on a turnover of Rs.44,28,000/-. Therefore, we are of the considered opinion that at least to this extent the source of deposit in the Bank A/c should have been accepted. Since the Assessing Officer has accepted the profit declared by the assessee u/s 44AD, therefore, the source of cash deposit to the extent of turnover at Rs.44,28,000/- in the Bank A/c is accepted as explained. However, the balance amount of Rs.38,91,058/- is sustained in absenc....