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2016 (1) TMI 616 - AT - Income TaxUnexplained cash deposits in the assessee's, a salaried person, bank account - Held that:- The assessee has not specified the cash required for house-hold and/or personal purposes, as well as toward investments, if any, made from f.y. 2005- 06 onwards, to have any purposeful assessment of the cash with him in June, 2007 and January, 2008, whereat excess cash of ₹ 3.50 lacs and ₹ 0.25 lacs is stated to be available. Further still, there is no explanation for cash received from friends and relatives when the assessee himself has surplus cash of ₹ 3.50 lacs. It is stated that the same is to cover the short-fall to honour a cheque of ₹ 5 lac, which though did not materialize. However, no details of this payment/investment are provided - to whom was the cheque issued/to be issued, and for what purpose. Then, again, why was the amount not refunded back when the transaction did not materialize? Why, for all we know, the amount is outstanding for payment even to date - so much for the temporary loans. As regards the cash deposit of ₹ 25,000/-, the same has been explained as sourced from the cash withdrawal during the current year. The same only implies a reduction in the cash withdrawal for the year by ₹ 25,000/-. The least that the assessee is therefore required to state is the cash withdrawal for the year, i.e., upto 27.1.2008. The cash withdrawal for the year has already been observed to be lower for the initial months, suggesting absorption of the surplus cash, if any, and in any case only to meet the day-to-day requirements. As already observed of no case being made out with reference to the date-wise withdrawal or by way of cash flow statement, specifying the cash requirement for maintenance purposes and/or investments, if any. - Decided against assessee.
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