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| The Tax Publishers2020 TaxPub(DT) 3531 (Kol-Trib) INCOME TAX ACT, 1961
Section 69
Where assessee had submitted that relevant bank account maintained by assessee with the Bank was duly reflected in the books of account of his proprietary concern and contended that the source of the cash deposits thus was duly reflected in the audited books of account of the assessee's proprietary concern and if opportunity was given to assessee, he was in a position to explain the source of cash deposits from the audited books of account of his proprietary concern, therefore, matter was remanded back to AO for deciding the same afresh.
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Income from undisclosed sources - Addition under section 69 - Investment made by assessee in bank deposits - Assessee pleading that bank account was duly reffected in books of propritary concern
Assessee was engaged in business of dealing in lottery ticket. During the course of assessment proceedings, AO found that assessee had made investment in fixed deposit with Bank during the year under consideration. Since the said deposit was not reflected in the balance sheet filed by assessee along with the return of income, assessee was called upon by AO to offer his explanation in the matter. Assessee submitted that the said deposit was reflected in his personal balance sheet, however, AO did not find the personal balance sheet prepared and furnished by assessee to be reliable. According to him, when the fixed deposit with the Bank was made by the assessee from the bank account which was duly reflected in the audited balance sheet of his proprietary concern filed along with the return of income, the said deposit also should have been reflected in the said balance sheet and not in the so-called personal balance sheet which was prepared and furnished by the assessee. He, therefore, treated the investment as unexplained. Held: Assessee had submitted that relevant bank account maintained by assessee with Bank was duly reflected in the books of account of his proprietary concern and cash deposits made in the said account were from the receipts of proprietary business of assessee dealing in lottery tickets. He had contended that the source of the said cash deposits thus was duly reflected in the audited books of account of assessee's proprietary concern and if opportunity was given to assessee by sending the matter back to AO, assessee was in a position to explain the source of cash deposits from the audited books of account of his proprietary concern. Therefore, matter was remanded back to AO for deciding the same afresh after verifying the explanation of assessee as regards the source of cash deposits made in the bank account before making investment in bank deposit.
REFERRED :
FAVOUR : In assessee's favour by way of remand
A.Y. :
INCOME TAX ACT, 1961
Section 69
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