SRI VEERARAGHAVAN MANNAPPANAICKAR,KANCHIPURAM vs. ITO, NCW-22(5), TAMBARAM

Brief facts of the case are that the assessee e-filed his return of income for the asst. year 2017-18 on 30/12/2017 admitting a total income of Rs.3,62,180/-. The case was selected for limited scrutiny under CASS. A notice u/s 143(2) of the Act dated 24/09/2018 was duly served on the assessee and notice u/s 142(1) of the act was also issued on 12/07/2019 calling for certain details through e-proceedings. In response to the notices issued, assessee furnished only the bank statements. On verification of the bank statements the ld. Assessing Officer found that the assessee has made cash deposit of Rs. 19,90,000/- during demonetisation period. The assessee vide his letter dt. 28/11/209 explained that the cash deposits made in the bank accounts are out of sale proceeds of agricultural produce. The ld. Assessing Officer found from the return of income filed the assessee has admitted only Rs. 1,97,500/- as agricultural income. The assessee has not produced any corroborative material evidences such as vouchers, bills or books of accounts to prove that the cash deposited with bank during the Demonetisation period of 09.11.2016 to 31.12.2016 are out of sale proceeds. Hence, the ld. Assessing Officer treated the cash deposits made into the bank during the demonetisation period as the Unexplained investments of the assessee as per the provisions of the Section 69 of the Act and accordingly a sum of Rs. 19,90,000/- is assessed as income of the assessee under the head "Unexplained Investments found in Bank account and is assessed to tax under the provisions of section 115BBE of the Act.