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2019 (9) TMI 254 - ITAT JAIPURUnexplained cash deposits in the banks - Income from undisclosed sources - availability of cash in hand out of past four financial years withdrawals - estimation of household expenditure - HELD THAT:- As during the last four years, the assessee has withdrawn ₹ 81,17,425 from his bank account which has been claimed in support of opening cash in hand. AO has however estimated household expenses at ₹ 5 lacs per annum totaling to ₹ 20 lacs and the balance ₹ 61,17,425 has been accepted as fair and reasonable towards the source of cash in hand. Therefore, the differential amount of ₹ 61,32,575 has been added and brought to tax as unexplained in the hands of the assessee. Estimation of household expenditure, it has been an admitted position by the Revenue that the same have been met largely out of pension and earnings from the shop. Given the standard of living of the assessee and his family, and the fact that assessee’s daughter is doing MBBS Course and the son is studying in JNNIT, Jaipur, AO has estimated household expenditure of ₹ 5 lacs per annum - in view of the overall facts and circumstances of the case, we find that the estimation of household expenditure is on a higher side and it would be fair and reasonable to restrict the same to ₹ 2 lacs per annum as against ₹ 5 lacs per annum. Regarding the contention of the AR that only withdrawals for last 4 years have been considered by the AO and not the earlier years withdrawals, we are unable to accede to the said contention of the ld AR as the lower authorities have been fair and reasonable to consider the availability of cash in hand out of withdrawals from last four years and it would be highly unrealistic that cash withdrawals made in years prior to last four years are kept by the assessee as cash in hand given that the assessee is a merchant navy official mostly on high seas and his expenses being met by the employer and thus not having the necessity to hold cash in hand. Further, he maintains account with banks and thus having regular banking facility and the cash can be withdrawn as and when needed by his family which in any case, as per assessee’s own submission doesn’t have very high cash requirement for meeting household expenditure. Aailability of cash in hand out of past four financial years withdrawals of ₹ 81,17,425, after considering the household expenditure at ₹ 2 lacs per annum as against ₹ 5 lacs determined earlier, comes to ₹ 73,17,425 and thus, the balance addition of ₹ 49,32,575 is hereby confirmed as remain unexplained and the assessee gets relief of ₹ 12,00,000. - Decided partly in favour of assessee
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