The assessee was associated with a contractor K. Such contractor was awarded construction work of road under a Government scheme. There was cash deposits in the bank of the assessee which was explained to be from the cash withdrawal from the bank of K. Owing to failure of K to reply to summons, entire cash deposited added to total income. The Tribunal held that, source of cash withdrawal in K’s account was the business receipts on account of road construction. Thus, cash deposits in the assessees account were his business receipts and such business receipts can be taxed only to the extent of profits earned. In the interest of justice, the Tribunal held that 8% of such receipts were taxable. (AY. 2009-10)
Samar Singh Parihar v. ITO (2018) 62 ITR 61 (Jabalpur)(Trib.)
S. 69A : Unexplained money – Cash deposit in the bank account of the assessee – source of such cash deposit was cash withdrawal from the account of one contractor – Held, entire cash deposit cannot be taxed – such cash deposit is part of business receipts – Held, to meet the interest of justice 8% taxable.