V. S. Brothers & Co. Vs Ward 23(3)(6) (ITAT Mumbai)
Information Reports ₹1.62-Crore Cash Deposit
V.S. Brothers & Co., a partnership firm, had not filed its return of income u/s 139(1) for AY 2018-19.
Information available with the Income-tax Department indicated that the assessee had allegedly deposited cash aggregating to ₹1,62,20,500 in an account maintained with Punjab & Sind Bank during the relevant previous year.
Based solely on this information, the AO reopened the assessment u/s 147. The AO also alleged that the assessee had not complied with the notice issued u/s 148.
However, in response to a subsequent notice u/s 142(1), the assessee categorically stated that it had not deposited any cash in the concerned Punjab & Sind Bank account during the relevant year.
AO Prefers Portal Information Over Bank Statement
The assessee furnished a copy of its bank statement to demonstrate that no cash deposits of the alleged amount appeared in the account.
The AO was nevertheless unconvinced. Without reconciling the departmental information with the actual bank statement or referring to any independent confirmation from the bank, he treated the entire amount of ₹1,62,20,500 as unexplained money u/s 69A.
The foundation of the addition was thus not any entry appearing in the bank account but information available with the Department alleging that such deposits had been made.
