Kishor Suresh Shinde Vs ITO (ITAT Pune Bench)
Business Income Declared, but Business Proof Missing—Rs.4.50-Lakh Cash Deposits Remain Unexplained u/s 69A
Non-filer enters the reassessment net
The assessee, Kishor Suresh Shinde, had not filed a return of income u/s 139(1) for AY 2017-18, although several financial transactions appeared against his PAN. Information available with the Department initially indicated that the assessee had made time deposits of Rs.1,01,50,000 with HDFC Bank Ltd.
The AO initiated reassessment proceedings & issued notice u/s 148 dated 28.02.2024. The assessee filed his return in response on 11.11.2024, declaring total income of Rs.9,74,976. This comprised interest income of Rs.8,36,166 & business income of Rs.1,38,810, allegedly earned on turnover of Rs.6,12,475.
The assessment was eventually completed u/s 147 r.w.s. 144 & 144B, adding cash deposits of Rs.4,50,000 as unexplained money u/s 69A. The CIT(A), NFAC, confirmed the addition, bringing the matter before the Pune ITAT.
AO accepts renewed deposit & declared interest
During assessment, the AO verified the HDFC Bank records & found that the alleged time deposit of Rs.1.01 crore was merely a renewal of an earlier deposit. Since no fresh investment had been made during the relevant year, no addition was made on this count.
