SHRI PRADIPKUMAR JETHABHAI PATEL,,ANAND vs. THE INCOME TAX OFFICER, WARD-1,, ANAND

This appeal by the Assessee is preferred against the order of the Ld. CIT(A)- IV, Baroda dated 06.12.2013 pertaining to A.Y. 2009-10.

Assessee is an advocate by profession who filed his return of income for the year on 08.01.2010 declaring total income at Rs. 1,95,890/-. In addition to the income from legal fees, the assessee has also shown profit on sale of shop and income from other sources.

During the course of the scrutiny assessment proceedings, the assessee was asked to explain the source of cash deposits made in his savings bank account no. 50000638144 with Allahabad Bank in which the assessee had deposited cash aggregating to Rs. 17.85 lacs.

In its reply, the assessee stated that he is having agricultural income and in support of it, the assessee produce sales bills. On perusal of the cash book submitted by the assessee, the A.O. noticed that the assessee was having opening cash balance of Rs. 3,74,286/-. The assessee was asked to explain why he has not shown agricultural income in his return of income and why he was keeping such huge cash in hand.

In reply, the assessee stated that he was under a belief that the agricultural income is not taxable. In respect of the cash in hand, the assessee stated that he is keeping the balance only to rotate the fund for showing the transaction in saving account. It was further explained that the cash is withdrawn from one bank account and again re-deposited in the savings account to establish with the visa authority that he is regularly transacting in his saving account. It was

After considering the facts and the submissions and the offer made by the assessee, the A.O. added Rs. 17.85 lacs to the assessee.

Assessee carried the matter before the ld. CIT(A) but without any success.

Before us, the ld. counsel for the assessee stated that the assessee was withdrawing cash from his over draft account and depositing the same in his savings bank account. The ld. counsel further reiterated that this was done to get the visa. In rebuttal, the ld. D.R. strongly supported the findings of the lower authorities.

We have given a thoughtful consideration to the orders of the authorities below. We have also carefully considered the submissions made by the assessee before the lower authorities. There is no dispute that the assessee had deposited cash in his savings bank account. The claim of the assessee that he was having agricultural income of about Rs. 5 lacs does not hold any water for the simple reason that neither the assessee had shown this income in his return of income nor any agricultural income was declared by the assessee in the preceding assessment years and in the succeeding assessment years.

As mentioned elsewhere, the assessee is an advocate by profession. Therefore it cannot be expected from him to withdraw cash from one account and deposit the same in another account when both the accounts are in the same branch of