INCOME TAX ACT, 1961

Section 69

Income from undisclosed sources - Addition under section 69 - Cash deposited in the bank account not explained -

AO received information regarding cash deposited by assessee in his three Saving Bank Accounts. He also invested in a banking company and earned interest income of Rs. 5,88,170. The case of assessee was re-opened under section 147. AO treated the amount taken as business receipt under section 44AD and made addition of Rs. 3,28,888 as income of assessee. Held: Assessee has been declaring income from business right since 2006-07 up to assessment year 2014-15. However, for the assessment year 2011-12, assessee had not filed any return of income and declared NIL income in response to the notice issued under section 148. Looking at the factual matrix AO brought on record that assessee had been declaring business income. The assessee had not furnished proof in respect of any other source of cash deposits. Therefore, AO was justified in making addition as assessee grossly failed to substantiate his claim that cash deposited in the bank account was not out of business receipts. It was incumbent upon the assessee to prove the source of cash deposits.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2011-12

INCOME TAX ACT, 1961

Section 147

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