TMI Blog2014 (8) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... earned income to the extent of the maximum cash balance as per his cash book, accordingly maximum addition is restricted to the peak of cash balance during the year. Under the circumstances, addition of ₹ 7,95,160/on account of unaccounted income is being confirmed and the assessee gets relief ₹ 31,75,604/. - TAX APPEAL NO. 821 of 2014 - - - Dated:- 11-8-2014 - MR.M.R. SHAH MR.K.J.THAKER JJ. FOR THE APPELLANT: MR KM PARIKH, ADVOCATE (PER : MR.M.R. SHAH) [1.0] Feeling aggrieved and dissatisfied with the impugned judgment and order dated 27.09.2013 passed by the learned Income Tax Appellate Tribunal (hereinafter referred to as Tribunal ) in ITA No.674/Ahd/2013 for Assessment Year 200910, the Revenue has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h exceeding ₹ 10 lacs in his savings account with Axis Bank Account No.55014. The assessee was, therefore, asked to furnish the copies of the bank statements along with the explanation on each of the credit entries and the assessee furnished the copies of the statements of the following bank accounts. (i) Axis Bank account No.55014 (ii) Axis Bank a/c No.21231 (iii) BOB a/c No.09959 (iv) Central Bank a/c No.205898 (v) SBI a/c No.910141 The assessee also furnished a cash book for the relevant period in support of his cash deposits in the bank accounts. The AO found that the assessee withdrew large sum of cash from his bank accounts which were redeposited in his other bank accounts and therefore, the AO doubte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imum cash balance as on 26.08.2008 on account of unaccounted income and deleting the addition of ₹ 31,75,604/. It is submitted that the learned Tribunal has not properly appreciated the fact that even the learned CIT(A) himself held that the assessee has failed to explain the requirement of cash withdrawals satisfactorily. It is submitted that the learned Tribunal has materially erred in not properly appreciating the fact that while upholding the decision of learned CIT(A) that only the peak of the unexplained cash deposits is liable for tax without appreciating that the assessee has failed to discharge his onus to prove the requirement of the cash withdrawals and that subsequent redeposit in the said bank account and therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsequently for his own use by redepositing the same in his bank account. As rightly observed by the learned CIT(A), once the source of deposit is explained, subsequent withdrawal is not required to be explained. In the facts and circumstances of the case, learned CIT(A) has not committed any error in restricting the addition to the extent of ₹ 7,95,160/on account of unaccounted income. In para 4, the learned CIT(A) while restricting the addition to ₹ 7,95,160/, has observed as under: 4. I have considered the facts of the case, finding of the AO and written submission made by the appellant. The undisputed facts are that the appellant has withdrawn and deposited cash. It is also a fact that the appellant has withdrawn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing conducted. The AO is not off the mark when he enquires about the intention of withdrawing money when sufficient cash is available. And if the plausible and satisfactory explanation is not forthcoming then the financial transaction appears suspicious. The only explanation available for withdrawing cash in spite of cash balance is available is that; i) the cash has been invested in unaccounted activities, income which is not offered. OR ii) there is really no cash balance available with the assessee as shown in the cash book. These arguments have not been demolished by the appellant therefore, question still remains unanswered. No reply to the above querries will lead to only one conclusion and that is the affairs of the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on the basis of facts available in file. During the course of assessment proceedings, the assessee had produced cash book and copy of the bank account. The appellant submitted before the A.O. that cash withdrawal from the bank was redeposited in the bank account. The A.O. did not find any discrepancy between cash withdrawal from the bank and cash available in the cash book on a particular date. The appellant had not claimed any expenditure on account of interest payment. The appellant had filed the confirmation of the persons from whom loans were given. The appellant neither paid interest nor earned any income on account of interest on advance. This aspect has not been doubted by the A.O. There is no limit in cash withdrawing the red ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
