SHRI DHARMENDER NARULA,FEROZEPUR vs. INCOME TAX OFFICER WARD-3(2), FEROZEPUR

The ld. DR relied on the order of the ld. CIT(A) and has also pointed out from page ‘M’ of the paper book to submits that it is already recorded by the AO that the information filed by the assessee was verified from documentary evidences furnished where it is found that the assessee has not accounted the bank a/c of Axis Bank in the original return and has prayed for sustaining the order of the appellate authority.

We have heard the rival submissions and considered the materials on record and we find that the total cash deposit in Axis Bank A/c XXXXX40416, which is sustained by the ld. first appellate authority is Rs.12,62,991/-, and at the same time we find that the total withdrawals through the entire year tantamount to Rs.12,61,845/-, which means the cash deposits and cash withdrawals are almost the same. As such, for proper appreciation of facts, we find that the entire cash deposits in the said bank account cannot be sustained, and it is also admitted that the assessee is engaged as a trader in trading of fruits and vegetables and has also admitted to have been earning commission. As such, in our opinion we determine the assessee to have earned profits from this transaction as recorded in Axis Bank A/c XXXXX40416 @ 8% of the total deposits which comes to Rs.1,01,039/-. As such, we restrict the addition on this ground to Rs.1,00,000/- (one lakh only) instead of Rs.12.61 lakhs and the assessee gets consequential relief.

In the result, the appeal of the assessee is partly allowed.