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2023 (11) TMI 246 - AT - Income TaxAddition u/s 69A - cash deposits in Bank out of earlier cash withdrawal from Bank - assessee had during the demonetization period, i.e., on 01.12.2016, deposited an amount of Rs. 23 lac in old notes of Rs. 500/- and Rs. 1000/- in her bank A/c. - CIT(A) disbelieving the availability of cash in hand merely because the same is kept as cash in hand for nearly 32 months, because the assessee was having bank account - HELD THAT:- It is not a case that the A.O had declined to accept the explanation of the assessee that the cash deposits of Rs. 23 lacs made on 01.12.2016 in her bank account were sourced out of the cash withdrawals that she had made way back in A.Y.2016-17 for the reason that a substantial period had lapsed, but the said explanation was rejected for the reason that now when the assessee had herself claimed that the cash withdrawals of Rs. 21.60 lacs (supra) was thereafter, utilized by her for giving short term interest bearing advances to third parties, then in the backdrop of the aforesaid factual position the availability of the said funds as cash in hand with her during the year for making cash deposit in her bank account did not merit acceptance. It is incomprehensible that the amount of Rs. 21.60 lacs (supra) withdrawn by the assessee in the period relevant to A.Y.2015-16 would have been exploited by giving the same as short-term interest-bearing advances to third parties and, at the same time, be available with her for sourcing the cash deposits in her bank account. Assessee had neither in the course of the assessment proceedings nor before the CIT(Appeals) or in the course of proceedings before me, placed on record the cash flow statement a/w. documentary evidence, which would establish that the short-term interest-bearing advances that she had given in the preceding year to third parties out of her cash withdrawals of Rs. 21.60 lac (supra) made from her bank account in the year 2014 were received back and lying available with her to, inter alia, source the cash deposit of Rs. 23 lac (supra) on 01.12.2016 in her bank account during the year under consideration. The legal heir of the assessee had failed to discharge the primary onus that was cast upon him to substantiate the “nature” and “source” of the cash deposit AND their explanation that the same was sourced out of the cash withdrawals made from her bank account on the year 2014 is nothing short of an unsubstantiated claim; thus, the same does not merit acceptance. However, in all fairness availability of cash in the hand with the assessee considering the fact that she had regularly been assessed to tax for the last many years can safely be taken at an amount of Rs. 2,50,000/- (on estimated basis). Accordingly, addition made by the A.O is sustained to the extent of Rs. 20,50,000/- [Rs. 23,00,000/- (-) Rs. 2,50,000/-]. Thus, the Grounds of appeal raised by the assessee are partly allowed
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