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2022 (12) TMI 739 - AT - Income TaxUnexplained cash deposits in Bank account and undisclosed interest income - AR submitted that during the said assessment year, the assessee’s son was planning to go to USA for higher education and as per the norms of respective college or university, the student or his parents shall have minimum balance of Rs. 15,00,000/- in the bank account. Therefore, during the year, the assessee started arranging the fund and the same was sourced by loan from bank withdrawal from Provident Fund and Teachers’ credit society, Gift from father-in-law, Loan from sister-in-law, Gift from wife and remaining balance was managed from his personal savings - HELD THAT:- It is pertinent to note that the assessee during the assessment proceedings has explained the reasons for which the assessee collected the cash deposits as well as the arrangement for the money. The assessee submitted evidence related to amount withdrawn from Teachers’ society which was accepted by the AO. Besides this the confirmations from sister-in-law regarding the loan and gift from father-in-law were also on record. The same were not doubted by the AO. The Gift from wife was also explained by the assessee through bank statements. Regarding personal saving the CIT(A) doubted that the assessee could not save that much amount. But the assessee was working as pharmacist in Government Hospital since 1976 and received salary, therefore, personal saving of a government employee cannot be doubted for several years. Thus, AO as well as the CIT(A) both failed to take cognizance of the evidences produced by the assessee during the assessment proceedings as well as before the CIT(A). The appeal of the assessee is allowed.
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