SRI PRADEEP BEURIA,BHADRAK vs. ITO BHADRAK WARD, BHADRAK

It was submitted by the ld. AR that the assessee is an individual, who is doing civil contract. It was the submission that the original assessment came to be completed u/s.143(3) of the Act, wherein the AO had recognized that the assessee had made cash deposit of Rs.16,48,000/- in the savings bank maintained with Bank of India, Jajpur. It was the submission that in the course of original assessment the AO had estimated the income of the assessee at 7% of the said amount of Rs.16,48,000/- holding the same to be an unexplained business transaction of the assessee. An order u/s.263 of the Act was passed by the ld. Pr.CIT, wherein the ld. Pr.CIT has directed that the whole amount of Rs.16,48,000/- is liable to be considered as the undisclosed income of the assessee as unexplained cash credit. It was the submission that unfortunately the assessee had not appealed against the order u/s.263 of the Act. It was the submission that in the order giving effect to the order passed u/s.263 of the Act, the AO has brought to tax the entire cash deposit in the savings bank account as the unexplained income of the assessee. The AO had made addition of Rs.15,32,640/- by reducing the amount of income which had already been assessed in the regular assessment. It was the submission that the assessee was doing petty contract work and this amount represented his receipts from the said petty contract. At this point, the ld. AR was requested to show the day-book in respect of the said transaction to which the ld. AR submitted that the day- book was not immediately available. He was then requested to provide the copy of the profit and loss account which was provided. However, in the profit and loss account it shows that the assessee is receiving contract work from various Government contract and his total contract during the year through Government contracts is nearly Rs.1.61 crores. The profit and loss account does not show any receipt from petty contracts. It was then requested to the ld. AR to provide the copy of the said bank account where the cash deposits have been made. It was submitted that the copy of the said bank account is not immediately available. It was the submission that the cash deposit was only for two days. Ld. AR further placed copy of the bank account of other accounts maintained by the assessee to submit that these deposits were out of the cash withdrawn from the said bank accounts. It was the submission that the addition as