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2021 (4) TMI 483 - AT - Income TaxUnexplained cash deposits - no explanation on source of cash deposits - assessee has purchased immovable property through cash deposits in bank - Whether bank deposits have been made out of the cash book which has been not found to be incorrect and nor rejected? - HELD THAT:- Entire payment for purchase of property has been made by the assessee from his bank account and the details of cash deposits has been incorporated - The source of cash deposits was from the business carried out by the assessee for which the assessee has given details of sales with the name of the parties which was to the tune of ₹ 2.13 crores. The summary of cash transactions along with date-wise detail of cash book which was produced before the authorities below has already been incorporated above. All the source of the cash deposits are from the regular books of account and cash books entry is also matching with the bank statement filed by the assessee in the paper book. In the light of the clear cut explanation which is duly supported by; firstly, the sale receipt of the assessee; and secondly, the amount which has been transferred from current account to his savings bank account which was duly appearing in cash book, explains the entire source. Therefore, it cannot be held that the cash deposits remain unexplained. In the light of the aforesaid explanation as submitted by the ld. counsel duly corroborated by the evidence on record, we hold that the entire cash deposits of ₹ 52 lac stands explained. Addition on household expenses - CIT(A) has confirmed the addition on the ground that assessee has not shown household expenses - HELD THAT:- We find that the assessee had shown household expenses and cash drawings from savings bank account at ₹ 60,000/- and approximately ₹ 35,000/- for LIC payments. Apart from that, assessee has also explained that he was staying with his father and majority of the household expenses was borne out by him. Without there any specific finding or material, the addition based on pure surmises and presumption cannot be sustained. Accordingly, the same is directed to be deleted. Undisclosed payment of rent - Difference as per the amount mentioned in rent agreement and shown in the P&L account - HELD THAT:- It is clear from the rent agreement itself that on the expiry of the period mentions rent will be further increased by 10% per annum. The rent agreement was dated 20.11.2009 and year under consideration is Assessment Year 2012-13, therefore, increment of 10% as per the clause of the rent agreement itself justifies the payment of ₹ 10,000/- per month which has been duly shown by the assessee. Accordingly, there is no reason for making the addition of ₹ 12,000/-, same is deleted.Appeal of the assessee is allowed.
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