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2013 (11) TMI 469 - AT - Income TaxUnexplained cash deposit in Bank account – Invocation of section 68(or section 69) of the Income Tax Act - The assessee, Shri Sushil M. Raney, who is assessed in the capacity of the legal representative of his late father, explains the impugned cash deposits to be cash donations/contributions collected from various donors outside Mumbai in small amounts with the help of the others, to be used for charitable purposes, in which his father was engaged, viz., helping poor people for marriage purposes, ill health, etc., being also associated with Vivekanand College, Chembur, Mumbai for over 40 years, being one of its founder trustees – Held that:- There is nothing on record to substantiate the claim of assessee-son. In fact, even so, inasmuch as the explanation furnished ascribes the source of the entire funds to donations, it would only mean that his father was engaged in charitable works by way of financial assistance to the poor and needy, without contributing anything of his own. Rather, if and to the extent the contributions are from the account-holder himself, there is an implicit admission of the source of funds being unaccounted or unexplained. In the present case, the assessee's explanation is vague and unsubstantiated - The peak credit theory is based on recycling of funds, implying systematic activity, while neither the nature of the deposits nor their utilization, stands explained, so that the plea is not maintainable at the threshold. Scrutiny (of the bank account statement) reveals it to be inconsistent with not only the explanation of the amounts being possibly used for charitable purposes, but also with the fact of the same being, apart from withdrawn in cash, also by cheques for ostensibly personal purposes, on a regular basis and in no insignificant sums - Further, the pattern of withdrawal reveals the account to be employed for transfer of funds in the main, i.e., deposit of cash at one place and its withdrawal at other; the funds being withdrawal almost in toto, and soon after their deposit. The assessee has been wholly unable to discharge the onus of a satisfactory explanation qua cash deposits, including the quantum of funds involved – Appeal disallowed – Decided against the Assessee.
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