IQBAL,GURGAON vs. ITO, WARD- 2(5), GURGAON

The grounds challenging initiation of reassessment were not pressed by the ld. AR. The same are, therefore, dismissed as not pressed.

The only other issue which survives in this appeal is against the confirmation of addition of Rs.3 lac.

Briefly stated, the facts of the case are that the assessee made cash deposits of Rs.28.65 lac in his bank account maintained with HDFC Bank. On being called upon to explain the source of deposits, the assessee submitted explanation which was accepted to the tune of Rs.25.05 lac. Remaining cash deposits of Rs.3 lac were added by the Assessing Officer. Such an addition came to be affirmed in the first appeal. The assessee is aggrieved against the sustenance of such an addition.

I have heard the rival submissions and perused the relevant material on record. The assessee deposited a sum of Rs.1 lac in his bank account on 29.12.2010 and a further sum of Rs.2 lac on 27.01.2011. The assessee is a small time employee. Here is a case in which the assessee has three brothers living together with their mother. The other three brothers are also having certain employments. This shows that all the three brothers, working as employees at lower posts, deposited a total sum of Rs.3 lac in the bank account maintained in the name of the assessee, which is not unreasonable. Considering the entire factual scenario prevailing in this case, I am of the considered opinion that the source of cash deposit of Rs.3 lac cannot be considered as unexplained.

In the result, the appeal filed by the assessee is partly allowed.