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2016 (5) TMI 138 - AT - Income TaxUnexplained cash credits - Held that:- Opening cash balance - With the assistance of both the parties, it is noted by us that the assessee has shown the closing cash balance in the balance-sheet of the last year. These documents could not be controverted by the lower authorities as well as by the learned Departmental representative before us. Therefore, we direct the Assessing Officer to accept the opening balance of ₹ 3,86,222. Cash withdrawn from Axis Bank and from PMC Bank - The assessee has submitted detailed cash summary showing inflow and outflow of the cash for the entire year. In our opinion, the assessee cannot be directed to prove the negative. It is a burden upon the Assessing Officer to prove that cash has been utilised elsewhere by the assessee before he rejects the claim of the assessee. Unless any such contrary material is brought on record by him to prove that cash has been utilised elsewhere by the assessee, he should give benefit of cash withdrawn by the assessee from the bank account against the amount of cash deposit into the bank account of the assessee, especially when the cash has been withdrawn and deposited in the same financial year, even if the bank from where cash was withdrawn and bank where the cash was deposited are different. Thus, after considering entire facts and circumstances of the case, we direct the Assessing Officer to give set off of entire amount of cash withdrawn from the Axis Bank and PMC Bank. Friendly loans and Gift from mother and father - No serious arguments have been made by the assessee for explaining friendly loans. Rather at the conclusion of the hearing the learned counsel stated that he did not want to press this amount. Therefore, in the absence of proper details and expression we reject this claim of friendly loans Income from free lancing - With the assistance of both the parties, it is noted that this amount has been shown by the assessee as its income in the return filed which has been accepted and taxed by the Assessing Officer in the assessment order. Therefore, we direct the Assessing Officer to give credit of this amount also. Thus, this claim is accepted. - Decided partly in favour of assessee. Unexplained expenditure on account of foreign traveling - Held that:- On the basis of the submissions made during the course of hearing that the entire amount was spent by the assessee by cheque and for this purpose our attention was drawn on page 16 of the paper book wherein it was shown that entire amount has been spent by different cheques issued from the bank accounts of the assessee. The asses see has given item-wise details and particulars of cheque number of various amounts paid by the assessee for meeting the expenditure incurred on foreign travel. These details clearly reflect that the assessee had made payment by cheque to Super Travels Pvt. Ltd. and to M/s. Paul Merchant for foreign currency. It appears that the learned Commissioner of Income- tax (Appeals), misunderstood the facts and presumed that the entire expenses were incurred by the assessee in cash. The learned Departmental representative did not make any serious arguments to rebut the submissions of the learned counsel. We find the disallowance has been made by the lower authorities under wrong assumption of facts. In our view the entire payment has been made from bank accounts of the assessee. Thus, no disallowance or addition is called for - Decided in favour of assessee.
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