INCOME TAX OFFICER Vs. N. SARAVANAN

JUDGEMENT

(1.) THIS appeal is filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) -I, Coimbatore dated 04.07.2014 for the assessment year 2010 -11 arising out of the assessment order passed under section 143(3) of the Act. The only issue in the appeal of the Revenue is that Commissioner of Income Tax (Appeals) erred in directing the Assessing Officer to recompute the income by deleting the addition of Rs. 20,11,710/ - made towards unexplained credit on account of bank deposits and directing the Assessing Officer to adopt peak credit of Rs. 1,36,163/ - as unexplained income.

(2.) THE assessee filed return of income admitting income of Rs. 1,35,165/ -. The assessment was completed under section 143(3) of the Act determining the income at Rs. 21,46,875/ -. While completing the assessment, the Assessing Officer made addition of Rs. 20,11,710/ - as unexplained cash deposit into savings bank account by the assessee, as the assessee could not explain sources for such cash deposits into the bank account. On further appeal, Commissioner of Income Tax (Appeals) considering the evidences produced by the assessee and the submissions thereon directed the Assessing Officer to delete the addition of Rs. 20,11,710/ - and consider only the amount of Rs. 1,36,163/ - being peak credit as unexplained cash credit. The Revenue is in appeal before us against the order of the Commissioner of Income Tax (Appeals).

(3.) COUNSEL for the assessee submits that assessee stopped the business long back in 2005 and he is not doing any business now and is only a salaried employee. Counsel submits that information called for by the Assessing Officer could not be produced in the course of assessment proceedings as the Advocate of the assessee Mr. P. Kumar could not file the details as his father died on 3.3.2013. Counsel submits that all the details were furnished before the Commissioner of Income Tax (Appeals) including bank statement and cash flow statements to substantiate the bank deposits by the assessee. Counsel for the assessee strongly relies on the order of the Commissioner of Income Tax (Appeals) in deleting the addition.