TaxTMI 
TaxTMI 
2025 (4) TMI 1938
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.... 3. For that the Ld. CIT(A) having accepted that the SBN deposits Rs. 34,86,700/- was out of the other income Rs. 38,92,292/- offered in the return of income erred in holding that income to the extent of Rs. 34,86,700/- out of other income of Rs. 38,92,292/- shown in return of income was to be assessed as unexplained cash credit. 4. For that the order of the AO be modified and the assessee be given relief prayed for. 5. For that the appellant craves leave to add, alter or withdraw any ground/s of appeal on or before hearing of the appeal." 3. Brief facts of the case are that the assessee had filed his return of income for the AY 2017-18 on 27.11.2017 declaring total income of Rs. 45,42,190/-. The case was selected for limited scrutiny for the reason of cash deposit during the demonetization period. The Assessing Officer (hereinafter referred to as ld. 'AO') issued statutory notices u/s 143(2) and 142(1) of the Act which were duly served upon the assessee; in response to which the assessee submitted some details from which it was observed that the assessee had received service charges through his proprietorship business in the name of M/s. M.P. ....
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....t proceeding, while adequate opportunities have been provided during the assessment proceeding to explain, with supporting documents, the nature and source of cash deposited in the appellant's bank accounts amounting to Rs. 34,86,700/-, the appellant apparently gave a summary generic response and had not availed those opportunities to explain satisfactorily the genuineness of cash credits, and the nature and source of cash deposits in bank accounts during the demonetization period. In the absence of the same, the AO had no option but to pass the assessment order u/s 144 of the Act with the afore-mentioned additions to the total income of the appellant. On ground no. 2, it is seen that the appellant was issued a show cause notice on 04/12/2019 after several notices in the past and in response to this show cause notice, the appellant filed a reply and the same was considered by the AO in the assessment order, which was passed on 18/12/2019. The appellant had furnished response on 05/21/2016 and on 09/12/2016. Therefore, claiming that adequate time was not given to respond to the show cause notice is without any basis and substance. The Appellant could have furnished those missing....
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....ank accounts. The AO went on to make addition of Rs. 34,86,700/- on the same bank account deposits u/s 68 of the Act. This addition is less than what was offered by the appellant as Income from other sources. Since the claim of the appellant was not disputed or countered by the AO and there is no other material evidence on record to prove that the appellant's claim of income from other sources is not out of his bank account deposits, but at the same time, the appellant had also not explained the nature and source of cash deposits, which was mostly during the demonetization period, it is held that the income offered to tax under the head Income from other sources to the extent of bank deposits (i.e., 34,86,700/-) is to be taxed under section 68 of the Act and the tax rates under section 115BBE is to be applied accordingly. In view of the above details, the grounds of appeal are treated as partly allowed." 4. Rival submissions were heard and the documents and written submissions filed have been examined. It was argued by the Ld. AR that the case involved legal issue as the assessee deposited the money during the demonetisation period in the bank account which was offe....
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.....11.2016 09.11.2016 To 31.12.2016 01.01.2017 To 31.03.2017 Indian Bank 459881098 Saving Bank 60,000.00 92,000.00 40,000.00 192,000.00 Santragachi Co. Operative Bank 22552040001911 Saving Bank - 45,000.00 30,000.00 75,000.00 State Bank of India 31325723840 Saving Bank - - - - UCO Bank 6530210000281 Current 285,200.00 2,902,000.00 - 3,187,200.00 United Bank of India 589050002592 Current - 102,500.00 - 102,500.00 345,200.00 3,141,500.00 70,000.00 3,556,700.00 6. It was further submitted that the assessee is an individual and earned income by way of service charges for material handling and transporting under the name and style of M/s. M.P. Enterprises. It was argued that the Ld. CIT(A) held that the income offered to tax under the head 'income from other sources' to the extent of bank deposits i.e. a sum of Rs. 34,86,700/- was to be taxed u/s 68 of the Act and the tax rate u/s 115BBE of the Act was to be applied accordingly and, in this regard, it was submitted that the income already declared in the return of income cannot be asse....