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2017 (11) TMI 795 - AT - Income TaxAddition of opening cash balance by treating the same as unexplained income of the assessee u/s 68 - Held that:- Assessee has opened a bank account with Axis Bank on 19.01.2013. In this bank account, there is a deposit of ₹ 3,10,000/- in the month of February, 2013. Out of it, ₹ 2,73,000/- was withdrawn between 13.02.2013 to 28.02.2013 and ₹ 1,60,000/- is deposited back on 13.03.2013 in the bank. Thus, the cash withdrawal for the month of February, 2013 is ₹ 1,13,000/- (Rs. 2,73,000 minus ₹ 1,60,000). In the month of March, 2013, assessee has withdrawn ₹ 1,94,500/-. Thus, the total withdrawal made from the bank account in February & March, 2013 is ₹ 3,07,500/- (Rs.1,13,000+ ₹ 1,94,500). It is also noted that assessee is regularly assessed to tax and in the Balance Sheet as on 31.03.2013, there is cash in hand of ₹ 4,95,222/- (PBP 15). In these facts and circumstances of the case, I do not find any justification in restricting the claim of opening cash in hand at ₹ 1,50,000/- only. The AO is therefore, directed to accept the claim of opening cash in balance of ₹ 4,95,222/-. Hence, the addition confirmed by ld. CIT(A) is deleted by allowing the ground No. 1 of the assessee. Addition treating the loan received as unexplained u/s 68 - Held that:- As the identity, creditworthiness and genuineness of the transaction is established and therefore, the addition is directed to be deleted. Thus ground No. 2 of the assessee is allowed. Addition treating the advance received from Shri Jay Ssingh and Smt. Manju Singh against sale of property as unexplained income of the assessee u/s 68 - Held that:- It is noted that that assessee has received advance from Sh. Jai Singh and Sh. Manju Singh against agreement to sale dated 24.05.2013 in respect of his plot of land at Anirudh Nagar, Bharatpur (PBP 47-48). The AO has recorded statement of both Sh. Jai Singh and Smt. Manju Singh on 21.11.2016. From the extract of the statement reproduced in the assessment order, it is noted that in reply to Q. No. 18 & 19, Sh. Jai Singh has accepted that he and his brother Shivram through his wife Smt. Manju Singh has entered into an agreement with assessee for purchase of said plot for R.21 lacs of which ₹ 15 lacs was paid in advance out of the sale proceeds of agricultural produce and past savings. In Q. No.20, he explained that remaining amount would be paid when the plot is registered in their name. Thus, when both the persons have accepted having given advance to the assessee against sale of plot and in the absence of any contrary material to establish otherwise, the Bench finds no reason to confirm the addition. In this view of the matter, the addition confirmed by the ld. CIT(A) amounting to ₹ 15 lacs. is deleted. Thus allowing Ground No. 3 of the assessee
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