SUJIT KUMAR JAISWAL,HOWRAH vs. ITO, WARD 46(4), KOLKATA, KOLKATA

order : October 31, 2017 ORDER This appeal filed by the assessee is directed against the order of Ld. CIT (Appeals) - 14 dated 29.07.2016 and the grounds raised

by the assessee therein read as under:

2. That on the facts and circumstances of the case the learned I.T.O.’s action in completing the assessment is illegal, ultravires and all cannons of law.

3. That the assessment order u/s 143(3) is unlawful as the notice of hearing u/s 143(2) dated 28.09.2012was not served to appellant up to 30th September, 2012. But notice is received by appellant after 30th September, 2012, it is not a valid notice.

Sujit Kumar Jaiswal 4. That the assessment is based on illegal notice and hence all actions thereafter are illegal. The assessment should be cancelled.

5. That arguing and not admitting, even if the assessment is legal the addition of the closing cash balance as on 31.03.2010 Rs. 10,41,001/- treating as undisclosed income for the assessment year 2011-12 and assessed to tax in the assessment year 2011-12 which is unjustified and bad in law.

on or before the date of hearing.

2. At the time hearing before the Tribunal, the learned counsel for the assessee has not pressed ground no 1 to 4 raised in this appeal. The same are accordingly dismissed as not pressed.

Sujit Kumar Jaiswal 3. Apropos the common issue involved in ground no 5 to 7 relating to the addition of Rs. 10,41,001/- made by the A.O. and confirmed by the Ld. CIT (A) on account of unexplained cash deposit found to be made in the bank account of the assessee, the relevant facts are that the assessee is an individual who is deriving income from tuition fees. The return of income for the year under consideration was filed by him on 29.07.2011 declaring a total income of Rs. 1,56,975/-. As per the AIR information received by the A.O., the assessee had deposited cash of Rs. 10,54,500/- in his Savings Bank Account and made credit card payments totalling to Rs. 8,21,400/- through three different credit cards. While explaining this cash deposits during the course of assessment proceedings, it was submitted by the assessee before the A.O. that a cash balance of Rs. 10,41,001/- was available at him as on 31.03.2010 and the same was utilised for making the deposits of Rs. 10,54,500/- in the bank account. This explanation of the assessee was not found acceptable by the A.O. According to him, there was apparently no reason for the assessee to hold so much cash in hand when he was maintaining a bank account. He also found that cash deposits in his bank account were made by the assessee in different amounts on different dates throughout the year. He held that the cash deposits in his bank account thus were not made by the assessee out of his opening cash balance and the explanation offered by the assessee based on the availability of opening cash balance was an afterthought. He, therefore, treated the cash deposits of Rs. 10,41,001/- made in his bank account by the assessee as unexplained and added the said amount to the total income of the assessee.

Sujit Kumar Jaiswal 4. The addition of Rs. 10,41,001/- was made by the A.O. on account of unexplained cash deposits was challenged by the assessee in the appeal filed before the assessee and the submissions made before the A.O. on this issue were reiterated on behalf of the assessee before the Ld. CIT (A). The Ld. CIT (A) however did not find the same to be acceptable in the absence of any evidence to support and substantiate the claim of the assessee of having the opening cash balance of Rs. 10,41,001/-. He agreed with the A.O. that the explanation offered by the assessee on the basis of availability of opening cash balance was only an afterthought which was difficult to accept. He also rejected the new plea raised by the assessee before him for the first time that the substantial cash balance was maintained by him as he was planning to buy agricultural land in native Bihar in the absence of any evidence to support and substantiate the same. He accordingly confirmed the addition made by the A.O. on this issue.