THE ITO-2(1), UJJAIN vs. SHRI ROOP CHAND PRAJAPATI, UJJAIN

आदेश / O R D E R

PER V. DURGA RAO, J.M: This appeal filed by the revenue is directed against order of the CIT(A), Ujjain dated 24.4.2015 for the assessment year 2009-10.

Subsequently, assessment was completed u/s 143(3) of the Act by assessing total income of Rs.1,96,550/-.

Subsequently, the Ld. Commissioner while exercising the power u/s 263 of the Act, set aside the order passed by the A.O. and directed the A.O. to re-do the assessment on 26.3.2014. The assessing officer, in pursuance to the order passed by the Ld. Commissioner u/s 263 of the Act, issued a show cause notice to the assessee. In response to that, assessee has submitted before the A.O. that the cash deposited in the bank out of the sale proceeds received on account of sale of bricks and submitted photocopies of bills and chart of the deposited amount is also enclosed.

[ITA 514/Ind/2015] [Shri Rup Chand Prajapati, Ujjain] However, the A.O. not agreeing with the explanation given by the assessee has made the addition.

There are deposits & withdrawals and therefore, the entire addition cannot be considered as an income of the assessee and submitted that peak addition may be added. On appeal, the Ld. CIT(A) after examining the bank account and also considering the deposits & withdrawals made by the assessee, he has made peak addition of Rs.2,29,181/- and granted relief to the extent of Rs.13,87,919/-.

[ITA 514/Ind/2015] [Shri Rup Chand Prajapati, Ujjain] 6. We have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. The only issue involved in this appeal is in respect of relief granted by the CIT(A) of Rs.13,87,919/-. In the assessment order, the A.O. has noted that there is a deposit in the assessee’s account amounting to Rs.16,17,100/-. The A.O. called the assessee’s explanation. It is submitted before the A.O. that the deposit relates to the business of the assessee i.e. bricks business and details in respect of the bricks business has been filed. However, the A.O. has not agreed with the explanation of the assessee and the entire amount of Rs.16,17,100/- is added in the hands of the assessee.

On appeal, the Ld. CIT(A) by considering the cash flow statement and also bank account of the assessee, he has came to conclusion that the deposit in the bank account of the assessee relates to assessee’s bricks business and there

[ITA 514/Ind/2015] [Shri Rup Chand Prajapati, Ujjain] are deposits & withdrawals, therefore, only peak addition has to be made in the hands of the assessee. Accordingly, the Ld. CIT(A) has made a peak addition to the extent of Rs.2,29,181/- and relief is granted to the extent of Rs.13,87,919/-. We find that the Ld. CIT(A), after examining the bank account by considering all the relevant details and also by considering the nature of business of the assessee, he has made a peak addition. We find no error in the order passed by the Ld. CIT(A). The ground raised by the revenue is dismissed.

Order was pronounced in the open court on 22 .02.2019.