Aditech Infotech Pvt Ltd Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that addition of all the cash deposits as unexplained income without giving credit for the withdrawal not justified. Accordingly, matter restored back to the file of AO for de novo consideration.
Facts- The case of the assessee was reopened under Section 148 of the Act. On perusal of the bank statements, AO observed that assessee had deposited a total amount of Rs. 1,50,60,650/- as cash deposits in the bank account and besides the above, there were other credits totalling to Rs. 1,93,71,657/- also appearing in the bank account. The AO observed that despite being given several opportunities, the assessee failed to furnish copy of Audit Report, Return of Income, computation of total income, cash book and final statements. Instead, the assessee simply filed statement showing cash deposits and withdrawals during the year. Therefore, in absence of any documentary evidence, the AO treated the total amount of cash deposits of Rs. 1,50,60,650/- as unexplained income of the assesse and added the same to the total income of the assessee. Further, the AO held that since the assessee failed to explain the credit entries in the bank accounts hence the amount of Rs. 38,74,331/-, being 20% of the gross receipts to the tune of Rs. 1,93,71,657/- was also added to the income of the assessee.
