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2020 (1) TMI 120 - AT - Income TaxBogus capital introduction - income from other sources u/s 69 - assessee has not filed any linkage/proof that withdrawal made last year remained and was utilized during the year for deposit in the capital account and thereby confirming the addition - whether the assessee has reasonably explained the source of capital introduction during the year or not? - HELD THAT:- There is no dispute that the withdrawals have been made by the assessee in the preceding financial year as well as current financial year from her capital account. Even the AO has also not disputed that these withdrawals have been made by the assessee from her capital account. Regarding the availability of cash so withdrawn at the time of reintroduction of capital during the year, the AO has raised an apprehension that withdrawals might have been utilized for some other purposes and it cannot be retained by the assessee in anticipation of proposed capital introduction during the year under consideration. Assessee has submitted that being an old lady, she had kept the amount so withdrawn with her for emergency requirement, the same was not utilized elsewhere, was available with her at the beginning of the financial year and was used for reintroduction of capital and has also submitted an affidavit in support of her contentions. The finding of the authorities below is in the realm of suspicion and conjectures as the source of capital introduction has been reasonably explained by the assessee as out of her withdrawals from her capital account in the latter half of immediate past financial year which were available at the beginning of the financial year as well as from the current financial year withdrawals and the addition so made by the Assessing officer is hereby directed to be deleted. - Decided in favour of assessee.
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