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2023 (2) TMI 113 - ITAT CHANDIGARHAddition in respect of cash deposits in his bank account - Onus to prove - HELD THAT:- In the instant case, CIT(A) has thus rightly taken cognizance of current year cash flow statement and considered the explanation of the assessee and has determined the peak cash balance of Rs. 31,38,050/- and the addition to that extent has been sustained and the remaining addition of Rs. 28,85,000/- has been directed to be deleted. While doing so, cash flow statement for the previous financial year 2007-08 and availability of opening cash in hand of Rs. 24,33,000/- at the beginning of current financial year 2008-09 has not been considered. We find that there is no justifiable basis in not considering the cash flow statement for the previous financial year 2007-08 where cash flow statement for the current financial year has been considered by the CIT(A). As submitted by the AR, the withdrawals and deposits are supported by the assessee's bank account statements which are available on record. Therefore, we set-aside the matter to the file of the AO for the limited purposes of examining the cash flow statement for the previous financial year 2007-08 and the related explanation of the assessee in order to determine cash-in-hand at the beginning of the current financial year. AO is also directed to consider and take into consideration the cash-in-hand so determined at the beginning of the year to re-determine the peak cash balance during the year, which has been currently determined and stood and peak cash balance so finally determined be brought to tax. Appeal of the assessee is allowed for statistical purposes.
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