INCOME TAX OFFICER Vs. NAGENDRA PRASHAD PROP.

JUDGEMENT

(1.) THIS appeal of the Revenue arises from the order of the CIT(A), Amritsar, dated 07.02.2014 for the assessment year 2009-10. The Revenue has raised the following grounds of appeal :-

(2.) The brief facts of the case are that the assessee derives income from trading of screw, nail etc. Due to non -compliance of assessment proceedings and non -furnishing of information, notice u/s. 133(6) of the Income Tax Act, 1961 (In short, the 'Act') was issued to the Manager, Axis Bank, Muzaffarpur to furnish the bank statement of the assessee, which was received on 05.12.2011. The assessee was found to have cash deposits of Rs. 15,38,300/ - on different dates, details of which are available at page 2 & 3 of AO's order. A show cause notice dated 23.12.2011 was issued to the assessee for explaining the source of said deposit but none attended. Further, opportunities were given from time to time but no one attended. Accordingly, the AO treated all the cash deposits in the Axis Bank as undisclosed income of the assessee.

(3.) Before the Ld. CIT(A), the ld. Counsel for the assessee submitted that the assessee has ventured the work on day to day basis between the period 01.04.2008 to 31.03.2009 and cash flow statement was also submitted for the period from 01.04.2008 to 31.03.2009. The AO has not given any set off to the corresponding debit entries/withdrawals as well as cash in hand available with the assessee in the business cash flow of the sole proprietorship concern. The assessee worked out the peak amount at Rs. 2,48,000/- on 22.04.2008 out of which assessee claimed cash in hand already available at Rs. 49,095/ - and requested the ld. CIT(A) to work out the peak at Rs. 1,98,905/-. The Ld. Counsel submitted before the ld. CIT(A) that it is the peak amount which at the best can be added after giving set off to the withdrawals made from the account. He relied upon the decisions of various courts of law as under :-