Prakash Govindbhai Patel Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that addition under section 69A of the Income Tax Act as unexplained cash credit sustained as assessee furnished no explanation or supporting documents to substantiate the source of cash deposit in the bank account.
Facts- The assessee, Shri Prakash Govindbhai Patel, filed his original Return of Income electronically on March 30, 2012, declaring a total income of Rs. 3,02,200/-. This return was processed under Section 143(1) of the Income Tax Act on June 16, 2012, with no alterations to the declared income.
However, on March 17, 2017, information was received from the Deputy Director of Income Tax (Investigation) regarding significant cash deposits in various bank accounts linked to the assessee and his proprietary concerns. AO observed that the assessee had filed return of income for assessment years 2010-11 to 2014-15 declaring meagre income which was not commensurate with the huge cash deposits made by the assessee in his own name and in the name of his proprietorship concerns.
AO proceeded to finalize the assessment based on available records, as the assessee had still not responded or provided any explanations regarding the unexplained cash deposits. AO added the unexplained cash deposits of Rs. 3,13,34,845/- to the total income.
