2023 (1) TMI 957 - AT - Income Tax
Addition u/s 68 - unexplained income in the nature of cash deposits in the bank accounts of the assessee - HELD THAT:- At this stage, it was not possible for the assessee to obtain confirmation from the friends and relatives after such a long time gap when the assessee has retired from service. In this regard, the assessee also placed on record an affidavit of the assessee which was not controverted by the Department. Therefore, in the absence of any contrary material by the Department, the Bench is of the view from the contents of the affidavit of the assessee that the assessee being an army personnel would not take risk in filing the false affidavit. Hence, the Bench feels that the assessee had received Rs.2,18,100/- from the friends and relatives against repayment of earlier loans. Thus the assessee is entitled for deletion of Rs.2,18,100/- from the total addition of Rs.15,41,749/-.
As far as remaining addition assessee in this regard has filed cash flow statement taking opening balance bearing corrections in the factual errors done by previous counsel which has been placed on record - The Bank statements of all the three banks accounts of the assessee for the relevant assessment are also placed on record.
Since it was a peculiar case of the assessee that he had withdrawn amounts from his bank accounts, therefore, he has placed on record bank statements of three bank accounts which could be verified by the revenue authorities. Therefore, AO is directed to verify the cash flow statement as submitted by the assessee with transactions carried out in these bank accounts by accepting opening cash balance in the cash flow statement and thus pass afresh order. Assessee is directed to submit the relevant documents/ evidences concerning the issue before the AO. Hence, the issue is restored to the file of the AO for afresh consideration by providing adequate opportunity of being heard to the assessee. Thus the appeal of the assessee is partly allowed for statistical purposes.