TaxTMI 
TaxTMI 
2024 (12) TMI 502
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....action of the Ld.CIT(A), confirming the action of the AO, wherein AO has made following additions of (i) Rs. 1,01,26,500/- u/s. 69A of the Income Tax Act, 1961, (hereinafter in short "Act"); (ii) Rs. 39,53,815/- as business income; & (iii) unproved claim of 80C deduction Rs. 1,19,408/-. 3. Brief facts are that assessee an individual is engaged in the business of trading in rig spares, who didn't file any return of income for AY 2017-18. The AO noted that assessee has made cash deposits of Rs. 1,08,43,200/- in his bank account maintained with Federal Bank & ICICI Bank during demonetization period. In order to find out genuineness of cash deposits, survey u/s. 133A was carried out at the business premises of the assessee on 10.03.2017. Simul....
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....,26,500/- out from business sales and follow up service nature". And pointed out that out of the total SBNs/cash deposit of Rs. 1,01,26,500/-, an amount to the extent of Rs. 34,62,810/- was asserted to be cash balance from business as on 08.11.2016 as reflected in cash book. And for the remaining amount of Rs. 66,63,690/-, he offered the same as unproved business income for financial year in addition to the normal business income under Pradhan Mandhiri Garib Kalyan Yojana, 2016. The AO further noted that on 30.03.2017 assessee filed an affidavit retracting his disclosure made during survey dated 10.03.2017; and also filed his return of income for AY 2017-18 declaring income of Rs. 13,88,000/-. And the AO noted that assessee had maintained t....
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....uineness of cash deposits, Department has conducted survey on the business premises of the assessee on 10.03.2017 and confronted the assessee, inter-alia, about maintaining of proper books of accounts etc., to which assessee submitted that he was maintaining books of account such as, day book as well as ledger being maintained in the computer etc. When confronted about the cash / SBN deposited during demonetization period in his bank accounts to the tune of Rs. 1,08,43,200/- and specially about the SBN to the extent of Rs. 1,01,26,500/-, the assessee submitted that source of deposit was from business i.e. sales and follow up services. He also brought to the notice of the survey team that out of said amount of Rs. 1,01,26,500/- [SBN deposite....
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....dded in the turnover can only be brought to tax and not the entire SBNs deposited can be separately taxed u/s. 69A of the Act because it was trade receipts. In other words, according to Ld.AR, amount credited in the four bank accounts including the SBNs/cash deposited in bank accounts are sourced from business income of the assessee which was the stand of the assessee right from the beginning. And the department couldn't disprove it despite survey was conducted at the business premises of the assessee on 10.03.2017 precisely to find out the source/genuineness of the cash deposit and couldn't find any iota of incriminating evidence to show that assessee had any other undisclosed source for SBN's/Cash/undisclosed income other than the busines....
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....ssessee has filed VAT returns and therefore, separate addition u/s. 69A of the Act was unreasonable and so unsustainable. It is noted that the aforesaid stand/assertion of the assessee couldn't be disproved by the AO, even though survey was conducted within seventy days after demonetization. As noted, the Survey team of department failed to unearth any incriminating evidence from the premises of assessee, which gives credence to the contention of the assessee that SBN deposited during demonetization period was his business income only. Moreover, it is noted that out of Rs. 1,01,26,500/- SBN deposited, assessee has shown to have closing balance of Rs. 34,62,810/- in his cash book which fact the AO acknowledges and there is no evidence to sho....