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2018 (2) TMI 345 - AT - Income TaxUnexplained cash deposits in the assessee’s bank account with ICICI Bank - Held that:- (a) AO shall vet the cash flow statement (summarized at PB page 10) for f.y. 2007-08 for the veracity of the various figures (with reference to the records, viz bank statement, assessed income), as well as its calculation. Needless to all, the CFS shall be for all the bank accounts of the assessee; (b) the opening cash balance as on 01.04.2007 shall, instead of an arbitrary figure of ₹ 1.60 lacs, be adopted at 1/3 of the business income for the immediately preceding year (AY 2007-08) as returned or, as the case may be, assessed. The household expenses for f.y. 2007-08, in line with that for the current year, be taken at ₹ 1,80,000/-, as fairly agreed to by the counsel during hearing; (c) the closing cash balance for A.Y. 2008-09, i.e., as on 31.03.2008, so arrived at, shall be the opening cash balance for the current year; (d) the A.O. shall verify the CFS for the current year, prepared, similarly, aggregating all the bank accounts of the assessee, adopting the correct figures; (e) the cash flow statement for the current year (AY 2009-10) be redrawn accordingly; and (f) the shortfall in cash as at the year-end (31.03.2009), if any, would stand to be confirmed, instead of ₹ 4.67 lacs, and the cash balance as on 01/04/2009 be taken at nil. Where positive, the entire addition would stand deleted, and the cash balance arrived at shall be the cash available with the assessee as on 01.04.2009.
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