2013 (7) TMI 1247

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....n of addition of Rs.3,26,000/- with the aid of Section 68 of the IT Act. 3. The brief facts of the case are that search & seizure operation u/s 132(1) of the IT Act, 1961 was carried out at the residential premises of the assessee, on 6.11.2009. In order to give logical end to the proceeding, a notice u/s 153A(1) of the IT Act was issued on 4.8.2010, for filing return of income within 30 days of service of the notice. In response to the notice assessee has filed his return of income on 13.10.2010 declaring total income of Rs.35,30,520/-. On scrutiny of the accounts it revealed to the ld. AO that a sum of Rs.3,26,000/- was deposited by the assessee in his bank a/c with HDFC Bank on various dates for the year. 2007, the ld. AO has added this....

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....Rs.1,96,000/- dated 03.08.2007 which has not been added here. It is seen that the same is a cheque deposit, hence is not hit by the provisions of Sec 68 as was the intent of the Ld AO. Consequently, the addition of Rs.3,26,000/- is confirmed." 5. The ld. counsel for the assessee while impugning the additions made by the AO has contended that assessee has withdrawn a sum of Rs.5 lakhs on 2.8.2007 vide cheque No. 03705855, out of this amount assessee had made deposits in cash with HDFC Bank. The ld. counsel for the assessee drew our attention towards page no. 36 of the paper book, where details of cash withdrawal are placed on the record. The assessee has also produced a certificate from HDFC Bank indicating that a sum of Rs.5 lakhs was wit....