2025 (12) TMI 678

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....khapatnam. Facts that lead to filing of this Appeal:- 2. [a] Appellant is an assessee; he has filed returns in respect of the income derived from his business of sale of fertilizers and pesticides in the name and style of Dhanalakshmi Agencies for the assessment year 2017-18 to 09.06.2017, admitting an income of Rs.5,10,480/-. The assessment was made under Section 143(3) of the Act vide orders dated 16.12.2019 and the total income was assessed at Rs.1,39,50,480/- by the Assessing Officer. [b] The explanation of the assessee was rejected by the Assessing Officer with regard to the sources for cash deposits and made addition of Rs. 1,34,40,000/- under Section 69A of the Act towards unexplained cash deposits. [c] An appeal was file....

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....vidence with insufficient reasons and confirmed the orders of the Commissioner of Income Tax (Appeals). Hence, the present appeal. Grounds urged in the present Appeal:- 4. (i) The Appellate Tribunal erred in rejecting the additional evidence on reasons, which are not relevant. (ii) The Appellate Tribunal overlooked the fact that the partners are owning reasonable extent of agriculture land, and furnished detailed basis of their annual savings. (iii) The Appellate Tribunal ought to have appreciated the fact that the appellant discharged the initial burden of proving the sources for the cash deposits by furnishing partnership deed and confirmation letters of the partners, therefore, cash deposits of Rs. 33,00,000/- shall not be tr....

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....the bank account of assessee as capital of the Firm Dhanalakshmi Traders. But the partnership deed does not contain any recital with respect to capital contribution by the partners. [iii] There is no explanation as to why capital contribution to the firm is deposited into assessee's personal account, instead of the Bank account of the partnership Firm, Dhanalakshmi Traders. [iv] The Additional evidence in the form of confirmation letters to the partners though filed creditworthiness of the partners is not established and the income earned by the partners through agricultural sources is not substantiated and that the deposit is into personal account of the assessee but not in the Firm Account. Therefore, the explanation is ....