2023 (11) TMI 1462

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....sh deposits during the demonetization period amounting to Rs. 28,88,000/-. The assessee, for the relevant Assessment Year, had not filed his return of income. The AO on notice issued under section 133(6) of the Act to State Bank of India called for the bank statement of the assessee. On receipt of the same, assessee was issued show cause notice to explain the source of cash deposits. In response to the show cause notice, assessee filed a reply through email dated 24.09.2019. The reply filed by the assessee was rejected. The AO brought to tax the cash deposit amounting to Rs. 28,88,000/- as unexplained investment under section 69 of the Act. The AO applied a special rate of tax as per the provision of section 115BBE of the Act. The relevant ....

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....nce, it shows that the assessee doesn't have valid explanation for the cash deposited during the demonetization and hence source for the same remains unexplained and accordingly. the deposited cash during the demonetization period Rs. 14,38,000/- and Rs. 14,50,000/- in A/c No. 65274533432 of State Bank of India on 15-11-2016 and 19-11-2016 respectively, totalling to Rs .28,88,000/- is brought to tax as Unexplained investment u/s. 69 of the I.T. Act, 1961. Accordingly, penalty is initiated u/s 271AAC(i) of the IT Act, 1961." 3. Aggrieved by the Assessment Order in making the addition under section 69 of the Act, assessee preferred appeal before the CIT(A). The CIT(A) rejected the contentions raised and dismissed the appeal of the asse....

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....of India on 15.11.2016 and 19.11.2016 of Rs. 14,38,000/- and Rs. 14,50,000/- respectively (aggregating to Rs. 28,88,000/-). During the course of assessment proceeding, since there was no effective representation, assessment was completed under section 144 of the Act. The CIT(A) during appellate proceedings directed the assessee to furnish a summary of cash withdrawal for explaining the source of cash deposits during demonetization period, which was duly produced on 31.01.2022. The CIT(A) on perusal of the same held that the cash withdrawals over the period of time from 01.11.2013 to 08.09.2015 is of less amounts and same has been withdrawn from various ATMs of different locations. The CIT(A) has categorically found that these withdrawals of....