Income Cash credit Assessee filed return of income which was subsequently, taken up for scrutiny under CASS During assessment proceeding, AO disallowed a sum as unexplained capital of partner of firm and that in assessment order assessee conceded for addition AO also disallowed interest for which, it was stated that AR of assessee conceded In first round of appeal, matter was restored back to AO holding that since additions were based on confession of counsel of assessee without investigation facts, AO should make assessment again after affording due opportunity to assessee where CIT(A) dismissed appeal In second round of assessment, assessee again could not explain source of capital introduction and hence, same was again treated as unaccounted income of assessee u/s 68 and added to assessee’s total income CIT(A) confirmed AO’s action Held, on enquiry being conducted by AO in compliance to directions by ITAT, noted that during year Sh. N and Smt. B, partner of firm had cash deposited with assessee AO had made addition of said deposit made by both partners in absence of corroborative documentary evidences to explain source of deposits excepts self-certified affidavits CIT(A) had considered written reply submitted by AR of assessee, self-certified affidavits and copy of ledger accounts produced CIT(A) had noted that assessee had explained that two partners had deposited cash out of cash receipts against advanced sale of land in individual hence however, assessee could not furnish any details evidence of holding of land, agreement with purchasers and date/mode of source of receipts either before AO or before CIT(A) Moreover, assessee had made no compliance to summons issued for attendance No documents were furnished before lower Authorities in support of contention that those amounts received for sale of lands CIT(A) further noted that during appellate proceedings also assessee could not file any evidence regarding cash receipts against advance of sale of land as also partners were not produced to give their statements Facts of case on hand demonstrate unexplained cash deposit in books of account of assessee for which neither assessee firm nor partners could give any evidence or satisfactory explanation regarding identity and source of such deposits and therefore, disbelieving contrary explanation offered by assessee in two round of proceedings before ITAT and lower Authorities without substantiating with corroborative documentary evidences, addition was confirmed as unexplained capital u/s 68 in hands of firm Assessee’s appeal dismissed.

VERMA SERVICE STATION BYE PASS ROAD vs. ASSISTANT COMMISSIONER OF INCOME TAX

(2019) 57 CCH 0033 AgraTrib