Case Law Details
Ram Avtar Bansal Vs ITO (ITAT Delhi)
The assessee was asked to explain the source of cash deposited in the aforementioned bank accounts. In his reply, the assessee accepted that the gross receipts of Rs. 60,02,800/- belong to him and simultaneously submitted a revised return on 18/1/2015. The gross receipts were shown as income from trading business of Grey Fabrics. The reasons for revising the return was mentioned as to buy peace and avoid litigation with the Income Tax Department in pursuance of AIR Information.
The A.O dismissed the revised return as in valid return and did not accept the claim of business for want of evidences. The aggregate amount of Rs. 73,41,300/- was treated as unexplained cash credit u/s 68 of the Act and the addition was made accordingly.
The assessee is a practicing Chartered Accountant and is, therefore, barred from doing any business. Only under certain circumstances, the governing body ICAI permits a practicing Chartered Accountant to do business. However, no such evidence was brought on record. The assessee has been harping upon the revised return which is in-fact an in valid return. Further, even before us the assessee has not brought on record any demonstrative evidence to justify his business activities. There is no evidence of any VAT, GST or permission from Municipality. Nor there are any evidences in respect of purchases/ sales of Gray Fabrics.
It appears that the revised return was filed only to cover up the queries raised during the assessment proceedings in respect of cash found to be deposited in various bank accounts.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
