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2020 (5) TMI 438 - AT - Income TaxAddition u/s 69A - unexplained cash deposits - AO found that the assessee has deposited in the saving bank account with ICICI Bank - HELD THAT:- The assessee filed day to day cash in hand position before me and submitted that earlier withdrawals were available with the assessee to deposit that amount and due credit to be given to such earlier withdrawals as available to deposit with bank account. According to the DR, the earlier withdrawals made by the assessee should not have redeposited with the bank account. The assessee submitted that the assessee withdrawn money from bank account for particular purposes, however, it was not kept idle and it was redeposited to bank account. The Assessing Officer did not accept the contention of the assessee since the assessee has not filed any fund flow statement or cash flow statement before him. AO has not examined the cash book to see that any cash balance is available with the assessee to redeposit the same in the bank account. AO has also not brought anything on record to show that the assessee has used the earlier withdrawals for his persons purposes and not for redeposit the same in the bank account. As presumed that the assessee has withdrawn cash and the same remains to be unutilized for one reason or the other and the cash remained with the assessee and used the same to deposit in the bank account. As decided in SHRI MATHEW PHILIP VERSUS THE INCOME TAX OFFICER, NON CORPORATE, WARD-1 (3) , RANGE-1, KOCHI. [2019 (11) TMI 1404 - ITAT COCHIN] AO has to examine the fund flow statement of the assessee and to re-examine the issue in the interest of justice. Accordingly, remit the issue to the file of the A.O. to give due credit towards the amount withdrawn by the assessee and kept idle and redeposited by the assessee into bank accounts.’ As inclined to direct the AO to give due credit to the opening balance of the year and also towards earlier withdrawals, after verifying the books of account of the assessee. - Appeal filed by the assessee is allowed for statistical purposes.
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