TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1091
X X X X Extracts X X X X
X X X X Extracts X X X X
....essee:- S.No. Name and Address of Bank A/c NO. Amount (In Rs.) 1. Union Bank of India - C Block, Community Centre, Janakpuri, New Delhi 532801010320327 Rs. 2,05,000/- 2. Union Bank of India - C Block, Community Centre, Janakpuri, New Delhi 532805040131024 Rs. 2,76,89,069/- 3. Axis Bank, Shadley Public School, Press Colony, G-8 Area, Rajouri Garden, New Delhi - 27 916020005278556 Rs. 4,55,53,158/- 4. Syndicate Bank - 1529 & 1532, Church Road, Kasmiri Gate, New Delhi 90321010010500 Rs. 3,82,000/- Total Rs. 7,38,29,227/- Despite several notices, assessee did not provide the details and AO was constraint to add a sum of Rs. 7,38,29,227/- u/s. 69A of the Act. 3. Upon assessee's appeal, Ld. CIT(A) noted t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... under the provisions of Section 69A of the Act in view of the scheme of those provisions. For application of Section 69A of the Act, two conditions are required to be satisfied. They are: 1. Investment/expenditure are not recorded in the books of account of assessee. 2. The nature and source of acquisition of assets or expenditure are not explained or not explained satisfactorily: The expression "nature and source" used in this section should be understood to mean requirement of identification of source and its genuineness. To explain "Nature" it would require the assessee to explain what is the description of investment or expenditure, period and the manner in which it was done. To explain the source it would require the assessee....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ner and the value could be deemed to be his income by virtue of Section 69A of the Act. 4.14. Following the ratio of the judgement of Hon'ble Supreme Court, in the instant case, the assessee deposited Cash and other credits in its bank account which resulted in gain and on the basis can be concluded that the assessee had income to the extent of credit entries appearing in bank accounts and it could be held to be the owner and the Money at its credit could be deemed to be its income by virtue of Section 69A of the Act. Hence, in the facts of this case a legitimate inference can be drawn that the assessee had income which he had deposited in Bank accounts and, as such, that Income was subject to tax. 4.15. The Hon'ble Supreme Co....
X X X X Extracts X X X X
X X X X Extracts X X X X
....him to show that the amount so received did not bear the character of income, and the tax-payer in the case had failed to prove this fact in respect of the remaining notes. The Hon'ble Supreme Court has held that The cases involving the encashment of high denomination notes are quite numerous. In some of them the explanation tendered by the tax-payer has been accepted and in some it has been rejected. Where the assessee was unable to prove that in his normal business or otherwise, he was possessed of so much cash, it was held that the assessee started under a cloud and must dispel that cloud to the reasonable satisfaction of the assessing authorities, and that if he did not, then, the Department was free to reject his explanation and to....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tisation period are normal business receipts and therefore, I hold that the amount of Cash deposited during demonetisation period, represented income from undisclosed sources. The assessee has concealed its true income which otherwise is taxable. Further, by relying upon the decision of Hon'ble Supreme Court in the cases cited above that there was ample evidence that Cash was deposited in bank accounts, which is prima facie evidence against the assessee that the deposits are undisclosed income on which the department can proceed in absence of good explanation. 4.19. In the view of the foregoing discussion the addition made by the AO u/s 69A is hereby upheld. In the result, the grounds of appeal are dismissed." 4. Against the above ....