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2021 (6) TMI 418 - ITAT DELHIUnexplained cash deposited in the bank account - gifts receipt from parents - HELD THAT:- AO himself has accepted the receipt from supply of building materials at ₹ 7,08,320/-. So far as the other items are concerned, however, they are not fully substantiated in absence of maintenance of any regular books of account as assessee has opted for the presumptive taxation scheme u/s 44AF. The opening cash balance of ₹ 2,50,256/- in my opinion cannot be accepted in toto. At the same time, it cannot be said that there is no opening cash balance. Therefore, adoption of opening cash balance at ₹ 2 lakh on estimate basis may be adopted for explaining the source of deposit in the bank account. Although the parents have filed the confirmations of gifts and they are very senior citizens and the father is deriving income from agriculture, at the same time, the gift was received in cash and, therefore, in absence of any other documentary evidence, the source of the parents to extend gift of ₹ 2,50,000/- to the assessee remains doubtful. However, some funds must be available with the parents who are very senior citizens to extend gift to their son. Therefore, gift of ₹ 1 lakh each by both the parents to the assessee under the facts and circumstances may be considered as reasonable to be explained as available to the assessee for deposit. Therefore, the claim of the assessee that he has received gifts from parents to the tune of ₹ 2,50,000/- is not accepted in full and gifts only to the tune of ₹ 2 lakh is accepted as explained for depositing in the bank account. So far as the cash available for deposit in the bank out of earlier withdrawals is concerned, here also the same is on estimation basis. An amount of ₹ 3,50,000/- may be accepted for earlier cash withdrawals eligible for re-deposit in the bank account as against ₹ 3,92,330/- since the assessee has estimated his personal withdrawals only for eight months. Thus, in effect, an amount of ₹ 1,42,330/- remains unexplained to be deposited in the bank account. Therefore, considering the totality of the facts of the case, I am of the considered opinion that an amount of ₹ 1,50,000/- on estimate basis is the unexplained cash deposited in the bank account which requires addition. Accordingly, the order of the CIT(A) is modified and the AO is directed to restrict the addition to ₹ 1,50,000/- to the returned income. The grounds raised by the assessee are partly allowed.
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