Vishal Vasudevbhai Modi Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that claim of assessee that income declared under Pradhan Mantri Garib Kalyan Yojana [PMGKY] and hence the same should not be treated as unexplained deposits needs verification. Hence, matter remitted to AO to verify the same.
Facts- The case was selected for scrutiny based on information that the assessee had deposited substantial cash in bank accounts during the demonetization period. The AO issued a notice u/s. 142(1) of the Act on 21/12/2017, followed by subsequent notices on 19/06/2019, 05/08/2019, and 26/11/2019, seeking an explanation for the deposits. However, the assessee failed to respond to these notices, and the AO proceeded with best judgment assessment u/s. 144 of the Act.
In absence of any books and response from the assessee, the AO treated the entire amount as turnover and applied an estimated profit rate of 8%, resulting in an addition of Rs.7,16,21,739/- as business income. Furthermore, cash deposits totaling Rs.3,18,04,850/- in the accounts of State Bank of India (Rs.9,37,400/-), Bank of Baroda (Rs.64,54,590/-), and Dena Bank (Rs.2,44,12,860/-) were treated as unexplained money u/s. 69A of the Act and taxed at a higher rate u/s. 115BBE.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
