2026 (4) TMI 1702

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of the Act dated 26.03.2022, for the Assessment Year 2017-18. 2. The sole issue raised by the assessee in this appeal is that Ld. CIT(A) is not justified in upholding the addition of Rs. 1,55,50,800/- made by the Ld. AO u/s. 69 of the Act. 3. In this case, assessee did not file return of income for AY 2017-18. On the basis of the information of substantial cash deposits, case of the assessee was reopened issuing notice u/s. 148 of the Act. However, no income tax return was filed by the assessee. Statutory notices u/s. 143(2) & 142(1) were issued and served upon the assessee. As the assessee did not make compliance to the notices, case was converted into secition 144 of the Act and draft assessment was issued, but no response from the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ective and defective invoices were submitted, which did not inspire confidence. Further, no consistent compliance history was found as returns and audit reports were not filed for multiple years, rendering verification of turnover and stock impossible. Ld. CIT(A) further, on perusal of purchase invoices, held that pattern of the bills is same and bills of M/s. Kiran Krushi Seva Kendra are without signature. The documents submitted by the assessee failed to meet the benchmark of credibility. Accordingly, the CIT(A) held that the explanation on account of business receipts was an afterthought and a colourable device to explain unexplained cash deposit. The cash deposits remained unsubstantiated, and therefore, the addition of Rs. 1,55,50,800/....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... on record. Assessee is engaged in the business of trading in fertilizers and pesticides. During the year under consideration, assessee deposited cash aggregating to Rs. 1,55,50,800/- in bank accounts. The assessee claimed that such deposits represent business receipts. However, due to non-compliance and non-production of complete books of account, Ld. AO treated the entire cash deposits as unexplained cash credits u/s 68. The addition was confirmed by the Ld. CIT(A). It is an undisputed fact that assessee has carried on business activity during the year and declared turnover of Rs. 1,94,36,372/-, as per Tax Audit Report which is higher than the impugned cash deposits. The cash deposits are thus prima facie linked to business receipts. Reve....