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| The Tax Publishers2020 TaxPub(DT) 3648 (Del-Trib) INCOME TAX ACT, 1961
Section 69A
Where assessee had given the explanation about the deposit of cash and withdrawals in the statement before AO but the same was simply rejected by AO, moreover, in the assessment order passed for assessment year 2012-13, income declared by assessee was accepted and no addition on account of undisclosed source under section 69A was made, in such a situation following the principle of consistency, the addition of the entire cash deposits in the assessee's bank account was uncalled for, therefore, AO was directed to make the addition of only the peak cash deposits during the year.
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Income from undisclosed source - Addition under section 69A - Unexplained cash deposit found in bank account of assessee -
Assessee was engaged in business of trading in steel tubes and pipes. Case of assessee was selected for scrutiny through CASS to examine the source of cash deposits in the saving bank account as per AIR information. AO issued notice under section 133(6) to bank pleading it to furnish the bank statement in respect of the account maintained by assessee and it was noticed that assessee had made cash deposits. AO noted that with respect to explanation of assessee about the source of cash deposits, there was inconsistency in assessee's explanation as per his statement recorded under section 131 and affidavits of the persons who had deposited in cash in assessee's bank account that was filed by assessee. Therefore, AO treated the said cash deposits as undisclosed income of the assessee under section 69A. Held: Assessee had given the explanation about the deposit of cash and withdrawals in statement before AO but the same was rejected by AO. In the assessment order passed for assessment year 2012-13 under section 147 read with section 143(3), income declared by assessee was accepted and no addition on account of undisclosed source under section 69A was made. In such a situation following the principle of consistency, the addition of the entire cash deposits in the assessee's bank account was uncalled for and find force in the submission of assessee that only the peak cash deposits be considered as income. Assessee had filed the working of the peak credit of deposits. Considering the totality of facts and in view therof it was to be held that in earlier years the addition was made only on the peak deposits. AO was, therefore, directed to make the addition of only the peak cash deposits during the year.
Relied:CIT v. Excel Industries Ltd. (2013) 358 ITR 295 (SC) : 2013 TaxPub(DT) 2414 (SC)
REFERRED :
FAVOUR : Partly in assessee's favour
A.Y. : 2011-12
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