TaxTMI 
TaxTMI 
2025 (8) TMI 665
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....ill in the business of trading of kerosene stove parts ie burners and accessories and even after retirement Appellant continued the said business in a very nominal Scale b) After retirement, the accumulation of all those cash income, surplus, was deposited during the period of demonetization i.e of high denomination notes. At the time of deposit Appellant's age was 83 years and by no imagination it will lead to any activity to earn that Rs. 9,00,000/- c) These facts should not be ignored and the purpose of demonetisation was not to trouble the octogenarian i.e, a very Senior Citizen. 2. The FAA i.e, CIT(A) failed to evaluate the above facts. 3. The FAA erred in not accepting the contention, submission regarding source of earning Rs. 9,00,000/- which was voluntarily offered under the head "Income from other sources". 4. The Appeal is filed in time. 5. The Appellant craves leave to add, alter or amend any of the grounds on or before the final date of hearing. 3. In brief, factual matrix of the case are that the assessee a retired official of Railways, filed his return of income for the A.Y.2017-18 on 18/07/2017 declaring to....
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....rther, it is stated that the cash deposit is his accumulated earning till 2016-17 and the same is deposited in the bank account. On perusal of bank account statement (as stated in para 4 above), it is noticed that the assessee has deposited old demonetized currency to the tune of Rs. 45,000/- in the bank account on every other day starting just after the announcement of demonetization. It is also seen from the table that the assessee is depositing the cash in three different accounts in the tune of Rs. 45,000/- every another day. This clearly shows that the amount is being deposited just below the threshold limit of Rs. 50,000/- and if it is accumulated earning, as stated by the assessee, the amount was to be deposited at one time only, which is not done." 3.2 The AO therefore, concluded that the appellant has nothing substantial to prove the geniuses of source of cash deposit and that the source of the cash deposit remain unexplained. Accordingly the sum of Rs. 9,00,000/- was treated as income of the assessee u/s.69A of the I.T.Act. and total income was assessed at Rs. 23,39,190/-. 4. Aggrieved, he filed appeal before CIT(A) and his response before him from time to time. Sub....
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....45,000/- 28/11/2016 Rs. 45,000/- 29/11/2016 Rs. 45,000/- 01/12/2016 Rs. 45,000/- 02/12/2016 Rs. 45,000/- 03/12/2016 Rs. 45,000/- 05/12/2016 Rs. 45,000/- 06/12/2016 Rs. 45,000/- Total Rs. 4,95,000/- Rs. 1,80,000/- Rs. 2,25,000/- 5.1 Thus, a total of Rs. 9 lakh was deposited in the above-mentioned bank accounts during the demonetization period i.e. in between 09.11.2016 to 31.12.2016. The source of these cash deposits, was stated to be profit from sale of stove parts. Consequently, a notice u/s 142(1) dated 02.07.2019 was issued to assessee requesting to provide the shop license, copy of GST return, business commencement certificate, etc, since; he had claimed source of cash deposit is profit from sale of stove parts. He was further confronted by the AO as to why no such income from sale of stove parts has not been offered in the return of income filed for Assessment year 2018-19. In response, the assessee submitted reply dated 12.07.2019 stating that he along with his family members are in....
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....atechchand Changlani demised who was carrying on business in Ambika Industries, A' was carrying on little business on a very nominal scale and the turnover of business was very low and Income was below marginal limit income subject to tax and this cash deposit was accumulation of total earnings till 2016-17 and the same was deposited and offered to tax without claiming deduction though it is saving in AY: 2017-18. The whole savings offered to tax voluntarily by the 'A' should be accepted by you gracefully. He has discharged his tax liability.." 6. As rightly pointed out by the lower authorities, the assessee could not explain the source of cash despots in the bank accounts in any satisfactory manner supported by any concrete evidence. The claim of deposits out of business receipts is devoid of any minimal evidence. However, in spite of doing business as claimed, he has not filed the return of income till AY 2016-17. It is also pertinent to mention here that assessee has not shown any such income for subsequent assessment year i.e AY 2018-19 as well. Further, the purported claim that the cash deposit is his accumulated earning till 2016-17 and the same is deposited in the ban....