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2022 (9) TMI 465 - AT - Income TaxUnexplained cash deposits - cash withdrawn was utilized / used for some other purpose - HELD THAT:- CIT(Appeals) has not erred in facts and in law in coming to the conclusion that there is a reasonable presumption that once there are substantial withdrawals from the bank account, then in the absence of the Department being able to establish that such withdrawals were utilised by the assessee elsewhere, it can be reasonably presumed that the same were re-deposited in the bank account. Therefore, in our considered view, Ld. CIT(Appeals) has not erred in facts and in law in deleting the aforesaid addition on account of unexplained cash deposits. Decided in favour of assessee. Addition on account of unexplained expenditure under section 69C - HELD THAT:- Punjab and Haryana High Court in the case of CIT v V.P. Singh [2013 (11) TMI 18 - PUNJAB AND HARYANA HIGH COURT] held that where assessee had submitted balance-sheet before Assessing Officer and in balance-sheet closing balance or cash in hand was disclosed and entries in balance-sheet had not been disputed by Assessing Officer, opening balance could not be regarded to be undisclosed income. In the case of ITO Vs Rahul kantilal Shah [2022 (9) TMI 375 - ITAT MUMBAI] ITAT held that addition on the basis of the opening balance of unsecured loan treating the same as current year transaction by invoking section 68 of the Income Tax Act is unsustainable - CIT(Appeals) has not erred in facts and in law in allowing part relief to the assessee which is the opening cash balance as on 1st April 2001, on the ground that the same could not be considered as income for the impugned year under consideration. Decided in favour of assessee. Addition u/s 40A(3) disallowing 20% for advances given for purchase of land - assessee contended that since no expenditure has been claimed by the assessee, the provisions of 40A(3) of the Act cannot be invoked - HELD THAT:- CIT(Appeals) has correctly applied the law that for the purpose of invoking provisions of section 40A(3) of the Act, it is a prerequisite that expenditure should have been claimed by the assessee. In the instant facts, admittedly, no expenditure was claimed by the assessee in respect of the amount for advances given for purchase of land. Accordingly, Ld. CIT(Appeals) has not erred in facts or law in deleting the additions which were made by invoking provisions of section 40A(3) of the Act. - Decided in favour of assessee.
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