|The Tax Publishers2020 TaxPub(DT) 4953 (Bang-Trib)
INCOME TAX ACT, 1961
Where AO treated entire cash deposits in assessee's bank account as unexplained money under section 69A and assessee pleaded that cash deposits were attributable to agricultural/trading activities, issue was remanded to AO for verification afresh.
Income from undisclosed sources - Addition under section 69A - Unexplained cash deposits in bank account -
AO treated entire cash deposits in assessee's bank account as unexplained money and brought to tax under section 69A for the reason that there was no reply/explanation to the notices issued under section 142(1). Assessee contended that there had been lapses on the part of assessee during the course of assessment proceedings. There was no reply/explanation to various notices issued under section 142(1). Assessee was a commission agent/trader of agricultural produce in APMC Market. This could be borne out from the fact that large payments were made from assessee's bank account to M/s. Ashirwad Sheet Grah Cold Storage and M/s. H.L. Jain Ice and Cold Storage. The above two entities were stockiest for agricultural produce and there were frequent cash deposits and withdrawals on account of sale and purchase of agricultural produce. Held: In the interest of justice and equity, one more opportunity was granted to assessee to prove his case that cash deposits were attributable to agricultural/trading activities.
FAVOUR : Matter remanded.
A.Y. : 2017-2018
IN THE ITAT, BANGALORE BENCH
SUBSCRIBE FOR FULL CONTENT