BIPINKUMAR MANSUKHBHAI DETROJA,AHMEDABAD vs. THE ITO, WARD 4(2)(1), AHMEDABAD, AHMEDABAD

In this case, the assessee is an individual who filed his return of income for the year under consideration on 29.03.2018, declaring total income of Rs.2,50,600/-. The return was processed u/s 143(1) of the Act and the case was selected for limited scrutiny through CASS for the issue of “cash deposit during demonetization period”. Subsequently, the assessment u/s 143(3) of the Act was completed on 06.12.2019, assessing the total income at Rs.8,26,600/-, after making an addition of Rs.5,76,000/- u/s 69A r.w.s. 115BBE of the Act on account Bipinkumar M Detroja Vs. ITO Asst. Year : 2017-18 - 2– of unexplained money. The observation made by the Assessing Officer in this regard is as follows:- “10. The assessee has not furnished cogent, logical and justifiable explanation to the issues flagged vide notices issued time-to-time under section 142(1) of the Income Tax Act, 1961. Further, the bank account and cash book also remained to be explained. Therefore, in view of the foregoing discussion, it has been established explicitly beyond any doubt that during the demonetization period, the assessee has deposited cash in its bank account amounting to Rs.5,76,000/- and the same remains unexplained. In the circumstances, this amount of Rs.5,76,000/- is held to be undisclosed income earned out of undisclosed sources. Also, the assessee has not put forth any evidence to prove sources of income or to rebut the above findings. As such, this amount of Rs.5,76,000/- is held to be the income out of undisclosed sources of the assessee for the year under consideration and accordingly taxed. Penalty proceeding under section 271AAC of the Income Tax Act, 1961 is initiated separately on his point.”