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2024 (4) TMI 351 - AT - Income TaxAddition u/s 69A - Addition of cash deposits made by the assessee during the demonetization period - observation of the A.O. based on the statement of the assessee recorded u/s. 131 as regards the availability of cash in hand - HELD THAT:- We are unable to persuade myself to subscribe to the view taken by the A.O. who had restricted the availability of cash in hand with the assessee (out of his accumulated savings) at Rs. 1 lac. As stated by the assessee in his reply he had started working way back in F.Y.2001-02 and had thereafter been regularly filing his return of income from A.Y. 2002-03 onwards. Thus it can safely be concluded that cash-in-hand of Rs. 2 lac sourced out of the accumulated savings of the assessee garnered over the preceding years, i.e A.Y 2002-03 to A.Y 2013-14 would have been available with him for funding the cash deposits in his bank accounts during the subject year. Accordingly, based on the methodology adopted by the A.O. for determining the availability of cash in hand (liquidity) with the assessee during the year under consideration, the same as per our aforesaid deliberations can safely be estimated at Rs. 6,58,443/- [Rs. 4,58,443/- (+) Rs. 2 lac] thus, in terms of my aforesaid observations, scale down the addition sustained by the CIT(Appeals) to an amount of Rs. 8,41,557/- [ Rs. 15 lacs (-) Rs. 6,58,443/-] and modify the order of the CIT(Appeals) accordingly. Appeal of the assessee is partly allowed
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