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2021 (9) TMI 1263 - AT - Income TaxAddition being cash deposit in the saving bank account - cash deposits treated as undisclosed income - Assessee argued that deposit made by the assessee on 29.11.2010 has been deposited out of the cash withdrawn earlier - HELD THAT:- The cash withdrawals made earlier by the assessee has not been controverted by Revenue but however the contention of the assessee that the cash deposits are out of such cash withdrawals was not accepted by the AO as there was a huge difference between the dates of cash withdrawal and cash deposits. Before us, Revenue has not placed any material to demonstrate that the cash withdrawal made by the assessee was not available with the assessee as it has been spent by the assessee or has been invested and therefore was not available for deposits. In such a situation, without their being evidence to the contrary, we are of the view that the explanation of the assessee of the cash deposits being out of the withdrawals made earlier cannot be simply brushed aside. We therefore, direct the deletion of cash deposits of ₹ 2 lakh. - Decided in favour of assessee. Bogus purchases - assessee argued that the impugned purchase made from Aggarwal Canvas Co., the sales have been made and the sales have been accepted by the Revenue and in such a situation, no disallowance of purchases is called for - HELD THAT:- As assessee could not produce the copy of the purchase invoice of Aggarwal Canvas Co. before the CIT(A) nor has it been produced before us. It is also a fact that alternatively it is the contention of the Learned AR that the gross profit of the sales made from the impugned purchases could be added to the income. Before us, assessee has not placed any record to point out the gross profit earned by the assessee during the year. Considering the totality of the facts and also the fact that the appeal is of A.Y. 2011-12, we are of the view that ends of justice shall be met in the present case if the disallowance is restricted to ₹ 15,000/-. We therefore direct the disallowance be made of ₹ 15,000/- and direct the deletion of the balance disallowance of ₹ 1,56,220/-. Thus the ground of the assessee is partly allowed.
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