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2018 (10) TMI 1490 - AT - Income TaxReopening of assessment u/s 148 - unexplained cash deposits - Held that:- Though the cash withdrawals aggregating to ₹ 4,79,000/- made by the assessee during the period 21.07.2004 to 03.03.2005 cannot be held to be available with him, in toto, as such, to explain the cash deposits in his bank account during the year under consideration, but in the absence of any material which could persuade us to conclude that the said funds were totally exhausted by the assessee, therefore, part of the said amount can safely be held to be available with the assessee. We find that our aforesaid view stands fortified by the judgment in the case of Anantharam Veerasinghaiah & Co. Vs. CIT (1980 (4) TMI 2 - SUPREME COURT). Addition of ₹ 2,75,750/- [i.e ₹ 6,08,250/- (-) ₹ 3,32,500/-] in respect of the cash deposits made by the assessee out of unexplained sources during the aforesaid period. Still further, as regards the cash deposit of ₹ 1,00,000/- made by the assessee on 23.09.2005, after considering the cash withdrawal of ₹ 30,000/- carried out by him a day before i.e on 22.09.2005, the balance investment of ₹ 70,000/- [i.e ₹ 1,00,000/- (-) ₹ 30,000/-] is held to be the income of the assessee as having been made from unexplained sources. We further find that the assessee had deposited an amount of ₹ 3,54,000/- in his bank account during the period 13.10.2005 to 23.01.2006. We find, that the aforesaid cash deposits are preceded by cash withdrawals aggregating to ₹ 2,32,000/- during the period 26.09.2005 to 22.10.2005. We thus, are of the considered view that the cash deposits of ₹ 2,32,000/- (out of the cash deposits of ₹ 3,54,000/-) stands explained to be have been sourced out of the aforesaid cash withdrawals. We thus, uphold the balance addition of ₹ 1,22,000/- [i.e ₹ 3,54,000/- (-) ₹ 2,32,000/-] in the hands of the assessee. We thus, in terms of our aforesaid observations substitute the addition of ₹ 11,49,000/- sustained by the CIT(A), by an addition of ₹ 4,67,750/- [i.e ₹ 2,75,750/- (+) ₹ 70,000/- (+) ₹ 1,22,000/-] in the hands of the assessee. - Appeal of the assessee is partly allowed.
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