Assessee individual was a trader of potatoes, and also ran a cold storage. AO observed that assessee had an undisclosed savings bank account with a deposit of Rs 17,60,992 which was made during the relevant previous year. On assessee’s failure to provide explanation, AO added the same as undisclosed income. CIT(A) confirmed addition of Rs 7,93,955 and gave relief of Rs 9,67,037. ITAT upheld the order of the CIT(A).-501305
1. The assessee individual was engaged in the businesses of trading in potatoes, involved in operating saw mills and also running a cold storage unit under the name and style of 'Umesh Cold Storage". The Learned AO observed that the assessee had an undisclosed savings bank account maintained with Axis Bank wherein a total deposit of Rs. 17,60,992/- was made during the relevant previous year and due to non-compliance on the part of the assessee for various opportunities granted by the Learned AO and for want of any explanation from the assessee with regard to the total deposits in the said bank account, the Learned AO proceeded to add the same as undisclosed income in the assessment.
2. CIT(A) confirmed the addition of Rs. 7,93,955/- and gave relief of Rs. 9,67,037/- to the assessee.
3 On appeal, the ITAT held as under:
“We find from the case relied upon by the Learned AR on the decision of Hon'ble Calcutta High Court, there was a clear cut finding recorded by the tribunal that the credits in the undisclosed bank represents undisclosed business receipts and withdrawals made thereon represent undisclosed business expenditure. In these circumstances, the Hon'ble Calcutta High Court affirmed the view of the tribunal to adopt the net profit thereon for the purpose of taxation. The facts in the instant case are squarely distinguishable from facts before the Hon'ble Calcutta High Court. Accordingly, the grounds raised by the assessee as well as the revenue are dismissed.”
Case Reference - Prasanta Kumar Bhattacharya Vs. I.T.O
IN THE INCOME TAX APPELLATE TRIBUNAL, "A" BENCH, KOLKATA
Before : Shri Mahavir Singh,Judicial Member, and
Shri M. Balaganesh, Accountant Member
I.T.A No. 02/Kol/2013 A.Y 2007-08