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2024 (10) TMI 1271 - AT - Income TaxAddition u/s 68 - cash deposit during demonetization period as unexplained cash credit assessee s claim of having introduced cash in form of capital with his proprietary concern - HELD THAT -Although the assessee in his statement recorded u/s. 131 had claimed to have introduced cash amounting to Rs. 21.70 lacs by way of capital addition (out of personal funds available with him) in his proprietary concern but I am afraid that the same in absence of any material which would irrefutably evidence availability of the aforesaid substantial amount of cash with him to source the capital introduction on the respective dates cannot be summarily accepted. AO s conviction that now when the assessee during the pre-demonetization period was already having substantial amount of cash available with him i.e. sourced out of opening CIH and cash withdrawn from bank accounts of the proprietary concern therefore it was beyond comprehension and against the principle of preponderance of human probabilities that he would be in possession of substantial amount of cash-in-hand (in his personal account) carries substance. If the assessee during the pre-demonetization period was in possession of substantial amount of cash in hand (personal account) then neither there would have been any need for him to have made heavy cash withdrawals from the bank accounts of his proprietary concern nor made cash withdrawals from his bank accounts for incurring business expenses. Accordingly the assessee s claim of having introduced cash in form of capital in his proprietary concern viz. M/s. CP Coal Company in absence of any supporting material and being beyond human probabilities cannot be accepted. Based on my aforesaid observations the cash in hand available with the assessee in the books of account of his proprietary concern i.e. on the date on which he had made a cash deposit of Rs. 33 lacs in Allahabad Bank stand reduced by an amount of Rs. 21.70 lacs i.e. the capital (in cash) allegedly claimed to have been introduced by him during the period 13.10.2016 to 02.11.2016 out of cash in hand (from personal account). As the cash book of the assessee reveals availability of the CIH as on 22.11.2016 of Rs. 33, 14, 870.58 therefore after reducing the same by an amount of Rs. 21.70 lacs (supra) the balance remains at Rs. 11, 44, 870.58. Thus cash in hand available with the assessee to source the cash deposit of Rs. 33 lacs on 22.11.2016 is explained only to the extent of Rs. 11, 44, 870.58 - Appeal of the assessee is partly allowed
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