For the AY. 2011-12, the assessment in the assessee’s case was completed by the Assessing Officer after making an addition of Rs. 1,75,322 on account of undisclosed interest on savings or deposits. The Principal Commissioner observed that the assessee had deposited cash of Rs. 60,00,000 in her savings bank account maintained during the FY. 2010-11 and that the Assessing Officer failed to examine and inquire into the facts in the light of the submissions of the assessee to determine the correctness of the claim of the assessee which was the very purpose of assessment.

Held, that the revision proceedings were not sustainable because:

(a) the assessee had filed documents required by the Assessing Officer in the form of bank statements and a copy of the sale deed of the agricultural land to explain the disputed cash deposits in her bank account.

(b) the source of cash deposits in the assessee’s bank account had been duly accepted by the Assessing Officer

(c) there was a direct nexus between the transaction of sale and the cash deposited in the bank account of the assessee and the cash was also deposited by the assessee on the same date. Further, the Assessing Officer had accepted the deal of sale of agricultural land with a conscious and independent application of mind. (AY .2011-12)