ITAT treats Source for Cash Deposits found in Bank Accounts as Unexplained Money on Unsubstantiated Evidence [Read Order]
ITAT treats Source for Cash Deposits – ITAT – Source for Cash Deposits – Cash Deposits – Bank Accounts as Unexplained Money – Bank Accounts – Unexplained Money – Unsubstantiated Evidence – income tax – taxscan
ITAT treats Source for Cash Deposits – ITAT – Source for Cash Deposits – Cash Deposits – Bank Accounts as Unexplained Money – Bank Accounts – Unexplained Money – Unsubstantiated Evidence – income tax – taxscan
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT), treated the source for cash deposits found in bank accounts as unexplained money on unsubstantiated evidence
The assessee, Eswara Reddy Kolli, is a partner of a firm M/s. Golden Marine Harvest filed the return of income for the assessment year 2014-15 and the case has been selected for limited scrutiny to verify large cash deposits in savings bank account.
During the course of assessment proceedings, as per a relevant information the assessee has made cash deposits of Rs. 95 lakhs in three bank accounts maintained with IDBI Bank Limited, Ongole and two accounts with Axis Bank Limited, Ongole. The Assessing Officer, called upon the assessee to file necessary evidences to prove nature and source for credit found in bank account.
The Counsel for the assessee submitted that he is partner in a firm which is engaged in selling seeds to farmers and the source of cash deposits found in three bank account at Ongole is the amount received from debtors of M/s. Golden Marine Harvest towards collection of sale proceeds of seeds. The assessee also submitted that the source for cash deposits is out of past agricultural income accumulated for several years.
The Tribunal of Mahavir Singh, Vice President and Manjunatha G, Accountant Member noted that the assessee could not file any other evidences like ledger copies of concerned sundry debtors account in the books of account of the partnership firm and relevant bank statement for having transferred said money to firm books of accounts.
In so far as, claim of accumulated agricultural income from family-owned agricultural land, the assessee could not file any evidence including details of land holding and amount of agricultural income earned year on year.
The Tribunal concluded by observing that “We are of the considered view that the claim of the assessee that source for cash deposits found in three bank accounts is out of amount received from debtors of partnership firm is unsubstantiated and thus, we reject argument of the assessee.”
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