M/S. VIJAY H. LILAWALA,,SURAT vs. THE INCOME TAX OFFICER, WARD-1(2)(5),, SURAT

This appeal filed by the Assessee is directed against the order of Commissioner of Income-Tax (Appeals)-II, Surat [in short “the CIT(A)”] dated 24-05-2016, for the assessment year 2008-09.

Ground No.1 & 3 are reopening of assessment is not pressed before us, hence, the same is treated as dismissed as not pressed. Ground no.2 relates to confirming the action of the AO in making 3. addition of Rs.20,38,261/- on account of deposit in the bank account from undisclosed sources. Brief facts of the cases are that the AO noticed that there are deposits 4. to the tune of Rs.20,38,261/- in his bank account for the year under consideration. It was explained that the cash deposit in the bank account M/s. Vijay H Lilawala v. ITO, Ward-1(2)(5),Surat/ITA. 2044/AHD/2016/A.Y.2008-09 Page 2 of 4 represents cash received from retail trading of plastic bags. However, the assessee has failed to furnish any details regarding plastic bags, therefore, the AO treated the same as unexplained and made the addition accordingly. 5. Being aggrieved, the assessee carried the matter before the ld. CIT(A). Wherein it was submitted that the assessee has retailer trading of plastic bags having turn of Rs.13,27,900/- and net profit shows at Rs.1,08,290/-. However, the CIT(A) observed that the appellant had never filed any appeal for the relevant assessment year. Further, no details of registration with VAT/Sales Tax Authorities, any registration with local authorities for running the business under the Shop and Establishment Act, etc. was furnished. The bank account has not been given, hence the explanation of the assessee was not found acceptable. Accordingly, the addition made by the AO was confirmed. 6. Being aggrieved, the assessee filed an appeal before this Tribunal. The ld. counsel submitted that the assessee is a retail traders of plastic bag having turnover of Rs.21,55,084/-. The assessee is very small retail dealer in plastic bag and after death of his brother in a car accident as on 03-03-2013 and his family facing complete financial crises and somehow managing affairs of the family. Therefore, it was contended that total transactions appeared in the bank account cannot be added instead of profit embedded therein can be added. The ld. counsel drawn out attention to bank account statement referred at paper book page 1, 2, 3 & 4. We show that credit and debits as well as the debits are appearing in the name of various business concerns. We suggest that the assessee was engaged in retail business more