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2019 (2) TMI 1267 - AT - Income TaxUnexplained income from undisclosed sources u/s 68 - substantial gain between the withdrawals and re-deposits in the Bank accounts - HELD THAT:- The assessee filed cash flow statement before A.O. which is supported by bank entries contained in both the Banks showing withdrawal of the amount in cash on different dates. The assessee also filed copy of the Agreement to Sell and cash receipts on sale of the car. Assessee referred to all the documents in the paper book and referred to the same items in the cash flow statement prepared by assessee. All the entries in the cash flow statement have not been doubted by the authorities below which are supported by documents on record. Thus, assessee has availability of cash with him. A.O. rejected the explanation of assessee because it was observed that once assessee has withdrawn the cash, it must be used somewhere else because of some necessity. CIT(A) found some substantial gain between the withdrawals and re-deposits in the same Bank accounts. Thus, onus was put upon assessee to prove that he has not spent the amount somewhere on withdrawal of the amount. However, the authorities below never doubted the documents on record and the cash flow statement filed by assessee. In this case the deposits were made after 4-5 years and it was directed that Revenue should show that assessee’s explanation should not be accepted, therefore, onus upon assessee would not lay to prove that amount withdrawn from the Bank have not been spent on some other items. A.O. has not brought any evidence on record that the amount withdrawn from the Banks have been spent by assessee somewhere else. There was no justification to reject the explanation of assessee on assumption and presumptions without bringing any evidence on record. Since the assessee is able to explain the source of the cash deposited in the Bank accounts through the cash flow statement, therefore, there was no justification to make the addition. There was no justification for the authorities below to calculate 2% of the expenses for earning of the income. Set aside the Orders of the authorities below and delete the entire addition. - Decided in favour of assessee.
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