SRI.BALACHANDRA S.,HULKOTI vs. INCOME-TAX OFFICER, GADAG

The assessee has filed an appeal against the order of Commissioner of Income Tax (Appeals), Hubli passed u/s. 143(3) and u/s 250 of the Income Tax Act, 1961.

At the time of hearing, the learned Authorised Representative has not pressed the Ground No.3 and made endorsement in the grounds of appeal. Accordingly Ground No.3 is treated as not pressed and dismissed. The effective grounds 1, 2 & 4 which are as under :

The Brief facts of the case are that the assessee is engaged in the business and filed the Return of Income for the Asst. Year 2013-14 on 10.01.2015 and the Return of Income was processed under Section 143(1) of the Act with total income of Rs.2,99,290. Subsequently the case was selected for scrutiny under CASS and Notice under Section 143(2) and 142(1) of the Act were issued. In compliance, the learned Authorised Representative appeared from time to time and filed the details. Whereas the assessee has declared the income under provisions of Section 44AD of the Act and Short Term Capital Loss. The Assessing Officer found that Axis Bank, Gadag to the extent of Rs.45,96,000 in the previous year. The explanation was sought for and whereas the assessee vide letter dt.02.02.2016 submitted that all the Deposits in the Bank account are agriculture income of the family members and filed Village Assistant Certificate, supporting the agriculture income. The Assessing Officer issued letter dt.18.02.2016 to the Axis Bank, Gadag for the Bank account statement and Assessing Officer on verification of statement found that the Bank account was opened in the status of individual. Similarly the Assessing Officer has also issued letter to Manager, Way to Wealth, Stock Broker and reply was filed. The contention of the ld. AR that the sources of deposit are out of agricultural income of family. Similarly, the assessee made a deposit of Rs.5 lakhs in KCC Bank, Gadag on 28.2.2013 and also made deposits in the Merchants Liberal Co-op Bank and no explanation was offered. Finally the Assessing Officer made addition of cash deposits of Rs.55,34,000 and assessed total income of Rs.58,33,290 and passed the order under Section 143(3) of the Act dt.23.3.2016. Aggrieved by the order, the assessee filed an appeal before the CIT (Appeals) whereas the CIT (Appeals)