TMI Blog2004 (12) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... his keeping of huge amount as physical cash balance in her custody as she has kept small amount of Rs. 1,84,180 in Canara Bank current account, Kelleys Branch. The AO, therefore, called for the explanation from the assessee for keeping this huge amount in her physical possession. The assessee explained that this amount was subsequently deposited in the bank and used for the purchase of property. The AO was of the opinion that there was no necessity to keep such amount of cash and even when this cash was in her possession, she has withdrawn money from various bank accounts and, therefore, doubted the availability of physical cash and treated this sum of Rs. 6,50,000 as income from other sources. 3. On appeal, the CIT(A) held that it is non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me. The assessee explained the total assets and liabilities position and he further submitted that the assessee has also filed return of income for the asst. yr. 1990-91. If the Department doubted the availability of cash balance, it can go to the concerned asst. yr. 1990-91 and treat it as unexplained income, but it cannot treat the opening balance in the asst. yr. 1991-92 as unexplained. The learned counsel for the assessee strongly supported the order of the CIT(A). 6. We have heard the rival submissions and perused the records. The assessee has filed a statement of affairs for the asst. yr. 1991-92 wherein she has shown the opening cash balance of Rs. 6,57,642.60. The AO added this physical possession of cash and added Rs. 6,50,000. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ke the interest under ss. 234A and 234B as charged while processing the return under s. 143(1)(a) of the Act, for the reason that the subsequent clarificatory amendment to s. 234B by the Finance Act, 1995, with retrospective effect from 1st April, 1989, supports the action of the AO in charging interest upto the date of regular assessment and the insertion of ss. 140A(1A) and 140A(1B) and the omission of Expln. 4 to s. 234A(1) and substitution of Expln. 1 in s. 234B(1) by the Finance Act, 2001, w.e.f. 1st April, 1989, would justify the action of the AO in charging the interest till the date of regular assessment. Accordingly, we reverse the order of the CIT(A) on this issue and allow the additional ground taken by the Revenue. 8. In the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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