Case Law Details
Smt. Dharipalli Rangamma Vs ACIT (ITAT Visakhapatnam)
Addition on account of Unexplained deposits in bank account found during search under Section 153C justified
Conclusion: Since the bank account in which assessee made huge cash deposits found during the course of search was not declared by assessee and assessee had not filed return for the year under consideration, therefore, the same constituted seized material so as to invoke section 153C in assessee’s case.
Held: Assessee had a bank account and made huge cash deposits in the said bank account. This fact had come to the notice of the department during the course of search and seizure operations conducted in the premises of searched person. Accordingly, AO issued notice under section 153C to assessee and made addition. Assessee contended that assessment was made on the basis of deposits made in bank accounts without having the seized material. It was found that assessee had not filed the regular return of income and no assessments were made u/s 143(3) / 143(1) for the impugned assessment year. Thus, the bank account found during the course of search was not declared by assessee. Therefore, the bank accounts found during the course of search constituted the seized material capable of initiating proceedings u/s 132. Accordingly, the action of the AO for initiating the proceedings u/s 153C and the legal validity of consequent additions made by the AO was upheld.
FULL TEXT OF THE ITAT JUDGEMENT
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