Case Law Details
Shaheen Khan Vs ITO (ITAT Allahabad)
Facts- The main sources of income of the assessee were from interest on FDRs, interest on saving bank account and interest income of his minor son and daughter. ROI of the assessee was processed by Revenue u/s 143(1) of the Act, and later on the case of the assessee was selected for framing scrutiny assessment u/s. 143(3) read with Section 143(2) of the 1961 Act , through CASS on the basis of AIR information as cash was deposited in saving bank accounts of the assessee above the prescribed threshold limits.
The assessee was asked to explain sources of the cash deposits in his bank account. AO observed that the cash deposits in the bank accounts of the assessee to the tune of Rs. 21,82,000/- could not be verified and hence the same were added to the income of the assessee by the AO as unexplained and unproved.
Assessee argued that the cash deposited is advance against sale of flat to M/s. Avtar Chemist.
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