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2023 (9) TMI 602 - ITAT AHMEDABAD
Addition on Cash Deposit made in bank account - As submitted appellant has received freight charges and made withdrawal from bank and the cash on hand has been deposited in to the bank account - HELD THAT:- We observe that the assessee has been able to reasonably explain that the source of deposits made in the bank account were out of the cash withdrawals made by the assessee from the bank account from time to time and also from the cash in hand held by the assessee. It is also notable that in the Remand Report, the Assessing Officer has not made any specific adverse inference against the assessee.
Looking into the facts of the instant case, wherein the assessee has given a detailed explanation that the source of cash deposits was out of cash withdrawals from the bank account and the cash in hand generated from the business of transportation, and nothing specific has been placed on record by the revenue authorities to controvert the assertion made by the assessee, then the source of such cash deposits can be said to be explained by the assessee.
It is a well-settled principle of law that once there are substantial cash withdrawals which have been made by the assessee from his bank account, then the source of cash deposits in the same bank account can be presumed to have been made from the earlier cash deposits, unless certain specific facts are brought on record to establish that the assessee has spent or invested the aforesaid amount so that such cash is not available with the assessee for redeposit. Accordingly, we are of the considered view that the additions are liable to be deleted. Appeal of the assessee is allowed.