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2022 (8) TMI 1396 - ITAT DELHIUnexplained cash credit u/s 68 - cash deposits in two savings bank accounts - HELD THAT:- As observed that assessee has deposited cash of Rs. 10,00,000 in the account held with Central Bank of India at one go on 20.12.2019 - On a perusal of the conveyance deed, said deed was executed on 06.01.2010. Therefore, assessee’s claim that an amount of Rs.10,00,000 was received towards sale consideration of the land prior to execution of conveyance deed and deposited in bank account on 30.12.2019, to some extent is believable. Benefit of doubt can be given to the assessee. This is so, because, AO neither in course of assessment proceedings nor during remand has been able to dislodge assessee’s claim by making any inquiry. Cash deposits in the account maintained with Central Bank of India stands explained. Balance amount deposited in the account maintained with Kotak Mohindra Bank, Rohtak, before rejecting the affidavits as false, the Assessing Officer must make reasonable enquiry with the persons filing affidavits. This has not been done by the AO in the present case. On an analysis of the bank statement, it is observed that the assessee has not only made cash deposits but has also made cash withdrawals on various dates - AO also accepted the aforesaid factual position. However, he didn’t make addition on peak basis on the plea that period of circulation of cash cannot be ascertained. This, in my view, is unacceptable. When the bank statement was available before the AO, he cannot again take the plea that the period of circulation of money is not ascertained. Assessee appeal allowed.
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