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2018 (9) TMI 1403 - ITAT VISAKHAPATNAMUnexplained cash flow deposits and withdrawals - source of the deposit and the destination of the withdrawal - Held that:- Perusal of the cash flow statement reveals that the assessee has made the cash deposits and also withdrawals and stated to be made the redeposit in the bank account out of the withdrawls, without giving explanation for the source of the deposit and the destination of the withdrawal. The purpose of the withdrawal, whether the amount was spent or not? was not explained by the assessee. As observed that the assessee claimed the source for deposits out of small amounts of withdrawals also which is not reliable and not the practice of a customer of the bank to withdraw the small amounts without the requirement for expenditure. The assessee required to explain the source of each credit and the destination of debit independently. Every debit cannot be taken as a source. The said details were not furnished by the assessee before the CIT(A) or before the AO, therefore, the Ld.CIT(A) has rightly rejected the claim made by the assessee with regard to the cash flow statement and explanation of the sources. - Decided against assessee. Peak credits - sources of such deposits and withdrawals unexplained - Held that:- For considering the peak credit, every debit and credit entries are required to be explained independently to hold that the withdrawal has come back as a source for the deposit. This exercise was not done either by the Ld.CIT(A) or by the AO. The assessee did not cooperate with the AO and did not furnish the details. Therefore, we set aside the entire issue and remit the matter back to the file of the AO to reconsider the issue afresh on merits and direct the AO to consider all the bank accounts. The assessee is directed to submit the details and not to resort to the non cooperative attitude like in the original assessment proceedings - Appeal of the assessee is allowed for statistical purpose.
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