TaxTMI 
TaxTMI 
2025 (6) TMI 1741
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....o made certain deposits in post office. The AO treated all the deposits as unexplained u/s.68 and assessed as total income of the appellant and completed the assessment u/s. 144 without giving proper opportunity to explain the nature and sources of deposits. 2. For that the addition of Rs. 18,12,393/- deposited in the bank account, in Recurring Deposits Account, Fixed Deposits, and payment of loan account are all treated as unexplained and assessed u/s.68 of the I.T. Act. is unlawful and unjustified and as such also arbitrary. The assessee had duly furnished all the details during the assessment proceedings which were duly explained the AO but the AO did not took into consideration. The AO should have accepted the explanation and should have 2 also verified the records of the assessee. The AO without verifying the details properly had just passed the assessment order. The amount of Rs. 18,12,393/- deposited during the demonization period is part of books of accounts which had been duly explained before the AO. Without considering the fact the AO on the basis of surmises and assumption had added the deposits u/s.68 to which the CIT(A) sustained the addition. The addition of....
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....s. 23,60,893/- by making addition of the deposits in the bank account as well as in the Post Office account. 4. Before us, ld AR of the assessee submits that the assessee is regularly assessed to income tax and had filed her return of income since long. The return of income for the year under appeal was not filed as the assessee is having total income below the maximum limit not chargeable to tax. In support of this, a copy of computation alongwith capital account, balance sheet and details of bank accounts, FDRs etc is filed in the paper book at pages 11 to 14. He submits that all the deposits made in the bank account and Post Office account are duly incorporated in the balance sheet so prepared and since even after incorporating all the details, the total income of the assessee is not exceeding the maximum amount not chargeable to tax, she had not filed the return of income for the year under appeal. He further submits that for the assessment year 2015-16, assessment was completed u/s.143(3) of the Act, wherein, the income declared was accepted by the department vide order dated 28.11.2017, copy of which is also placed before us. Ld AR further submits that all the deposits in ....
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....lant has failed to make the mandatory payment of the amount equal to the amount of advance tax which was payable by him. Further, the appellant neither provided any clarification/explanation in response to the deficiency letter issued by this office nor did he offer any good and sufficient reasons seeking exemption from the operation of the sec.294(4)(b) even though sufficient opportunities were provided to him. On careful consideration of the above facts and circumstances, as the appellant has failed to fulfil the mandatory and essential conditions for admission of appeal before CIT(A) as per Sec. 249(4)(b), the present appeal is liable to be held as not eligible for admission. In the result, the appeal is treated as dismissed for statistical purposes. Appellant Contentions - Assessment completed u/s.144 on the basis that no return of income was filed by the appellant. The AO added the cash deposits deposited in MMDC, RD & SB Account and Cent Mortgage Account. The AO without proper verification and without going through the details just added all the cash deposits and treated the same as total income. The AO added cash deposits to the e....
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....cord. In the instant case, the assessment proceedings were taken up for the sole reason that the assessee has made deposits in the bank account and post office account and had not filed her return of income for the impugned assessment year. From the perusal of the computation of total income and balance sheet etc, filed in the paper book, we find that all the deposits in the form FDs, RDs account and other cash deposits find place in the assets shown in the balance sheet and also the income earned thereon in the shape of interest etc are duly taken to the computation of total income where after considering other incomes and investments made for deduction under Chapter VIA, the total income of the assessee was computed which is lower than the amount maximum not chargeable to tax. Further from the perusal of the fund flow statement, we find that there was opening balance of Rs. 6,02,645/- taken from the balance sheet of preceding year and the closing balance was taken to the next year where the return was also not filed being income not exceeding the amount not chargeable to tax. Looking to this fact, it would be fair and reasonable to set aside the matter to the file of the Assessin....
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....ALANCE SHEET AS ON 31.03.2017 CAPITAL Madhusmita Guin 18,75,117.00 ASSETS 21,63,947.00 Bank & Postal deposits as per list NSC 8th issue as per list 2,41,125.00 Liabilities - 4,41,000.00 Mohan Kumar Guin 94,000.00 Loan from friends and relatives 5,045.00 Cash In Hand 24,10,117.00 24,10,117.00 Details of Investments in NSC A/c CI. Balance 1,06,125.00 45,000.00 Op. Balance 7,225.00 98,900.00 for 70,000/- dt.07.03.2012 for 45.000/-dt.09.12.2016 for 45.000/-dt. 14.12.2016 for 45.000/-dt. 15.12.2016 45,000.00 45,000.00 2,41,125.00 7,225.00 Copy of A/c, with Mohan Kumar Guin Opening Balance ( 01.04.2016 ) Add : Additions during the year 2,52,000.00 in RD A/c. (5,250 x 12 ) in 3 Accounts. 1,89,000.00 4,41,000.00 CI. Balance ( 31.3.2017 ) 4,41,000.00 4,41,000.00 Document 3 MADHUSMITA GUIN D/o. Debendranath Nandi C/o. Harish chandra Guin Jaunliapatty. Cuttack Asst. Year : 2017-2018 Year Ending :31.03.2017 D.O.B. :05.02.1985 Status : Individual Is of Bank S.B a/c , FD a/c Interest & its Closing Balance Op. Balance Interest TDAS Cl. Balance 1 Central Bank of India a SB A/c No.3577866517 ( CB....