TaxTMI 
TaxTMI 
2025 (9) TMI 278
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....iled return of income for assessment year 2017-2018. The Department had information that, assessee during the financial year relevant to assessment year 2017-2018, during demonetization period had deposited huge cash totaling to Rs. 74.74 lakhs and other credits totaling to Rs. 625.03 lakhs. Therefore, the Assessing Officer had issued notice u/sec. 148 of the Income Tax Act, 1961 [in short "the Act"] on 30.03.2021. However, the assessee had not filed any return of income in response to the said sec. 148 notice. Therefore, the Assessing Officer issued statutory notices u/sec. 142(1) of the Act calling the assessee to furnish his explanation. In response, the assessee has filed his reply dated 24.12.2021 stating that, he was employed on salar....
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....lso on perusal of the P & L Account in the case of Chinnu Wines and Babu Wines noticed that, the sales were shown at Rs. 3,79,63,588/- and Rs. 3,38,63,492/- by the above parties respectively totaling to Rs. 7,18,27,080/-. Whereas the credits in the account of the assessee are to the tune of Rs. 7,90,13,760/-. Since the assessee has not submitted sufficient corroborative evidence with regard to the claim of Rs. 7,90,13,761/-, the Assessing Officer has not accepted the same and added the said amount u/sec. 68 of the Income Tax Act, 1961 read with section 115BBE of the Income Tax Act, 1961 and assessed the total income of the assessee at Rs. 7,94,27,823/- as against the returned income of assessee at Rs. 3,67,000/- vide order dated 23.03.2022 ....
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....accounts of the assessee as unexplained cash credits u/sec. 68 of the Act, without considering the explanation of the assessee that, he was employed on salary basis for Chinnu Wines [Proprietor Sadasiva Polthi] and Babu Wines [Proprietor Anjan Kumar Polthi] and cash deposits into his bank account is sale proceeds of above two firms and the assessee has deposited cash into his bank account for security reasons and subsequently the same has been transferred to the bank accounts of above two persons. Learned Counsel for the Assessee further referring to various evidences including return of income filed by the assessee on 06.08.2021 in response to notice u/sec. 148 of the Act and further, return of income filed by Sri P. Anjan Kumar and Sri P.....
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....re the due date provided u/sec. 139 of the Act. The assessment has been reopened on the basis of information with the Department that, assessee during the demonetization period has deposited huge cash and other credits into his bank account. Notice u/sec. 148 of the Act dated 30.03.2021 was issued, but, the assessee did not file his return of income on or before the due date provided in the notice. The assessee could not satisfactorily explained source for cash deposit into bank account. Although, the assessee claims that cash deposit is out of sale proceeds of Chinnu Wines and Babu Wines and he was employed in the above firms, but, no evidence has been filed to justify the claim of the assessee. The only evidence the assessee has filed is ....
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....ed at the place of business and subsequently transferred to the bank accounts of the above two persons. The Assessing Officer rejected the explanation of assessee on the ground that, the assessee is a non-filer and has not filed his return of income u/sec. 148 notice and further, even, if assessee filed return of income, such return is beyond the due date and after issue of notice u/sec. 148 of the Act. Further, the assessee could not substantiate it's claim of an employee of above two firms with any credible evidence. 8. We have given due consideration to the arguments of the Learned Counsel for the Assessee in light of various evidences on the issue of addition made towards cash deposit and other credits in the bank account u/sec. 68 o....
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.... States, the employees who are working in bonded warehouse/place of business should be provided to the concerned authorities while obtaining licenses from the authorities for trading in said goods. In the present case, the assessee neither filed any credible evidence to prove employment nor filed any details with regard to furnishing of employees details to the authorities while obtaining the licenses. In absence of any evidence which could prove the employment, in our considered view, the averments made by the assessee in light of return of income filed showing income from salary cannot prove the employment of the assessee. Once assessee is unable to prove the employment with above firms, then, the argument that, source for cash deposit in....