TMI Blog2012 (12) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... re was a genuine apprehension of attachment of the assessee's account in the process of recovery by the banks against sick companies and in that course assessee withdraw the cash. Appeal decides in favour of assessee - ITA No. 1557/Mum/2010 - - - Dated:- 25-7-2012 - SHRI G E VEERABHADRAPPA SHRI VIJAY PAL RAO, JJ. Assessee by Sh Sanjay R Parikh Revenue by Sh A K Nayak PER VIJAY PAL RAO, JM This appeal by the assessee is directed against the order dated 01/12/2009 of CIT(A) for the assessment year 2006-07. 2 The assessee has raised following grounds in this appeal: 1(a) The Learned CIT (Appeals) erred in facts and law in confirming the action of the Assessing Officer in treating redeposit of cash on hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due to the recovery against the sick company in which assessee is a director. 3.1 On appeal the CIT(A) has concurred with the view of the Assessing Officer while passing the impugned order. 4 Before us, the learned A.R. of the assessee has pointed out that the assessee vide its letter dated 20/10/2008 has explained the facts and circumstances under which the assessee withdrawn the sum of Rs. 16.10 lakhs from the saving bank account with MDCCB, Chembur branch, Mumbai. The explanation of the assessee has been reproduced by the assessing officer at page number 2 as under: During the month of August, 2005, I had withdrawn cash of Rs. 16.10 lacs from my saving account with MDCB, Chembur branch. Out of this cash Rs. 1,10,000/- was spent f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td is sick and approach BIFR and the assessee had advanced funds from time to time to Apte Amalgamations Ltd for running the operations. M/s Laxmi Vishnu Textiles Mills Ltd owed monies to Apte Amalgamations Ltd over Rs. 6 crores. When the properties of M/s Laxmi Vishnu Textile Mills Ltd were purchased by M/s Trans Asia Global Trade,, M/s Laxmi Vishnu Textiles Mills Ltd., requested M/s Trans Asia Global Trade to make part payment of consideration to M/s Apte Amalgamation Ltd. Since the assessee was to receive substantial advances given to M/s Apte Amalgamations Ltd, M/s Laxmi Vishnu Textiles Mills Ltd had requested M/s Trans Asia Global Trade to make direct payments to the assessee on behalf of M/s Apte Amalgamations Ltd. Thus, effectively t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other hand, the learned and D.R. has submitted that the explanation of the assessee is not acceptable and believable when the assessee kept the money in the house for seven months which is not expected from any prudent businessman. He has referred the assessment order and submitted that the Assessing Officer has pointed out that when the assessee has deposited Rs. 1.5 crore as received from M/s Trans Asia Global Trade, the apprehension of attachment of bank account were also there and why the assessee is selectively took steps for withdrawing the amount of only 16.10 lakhs. Thus, the learned D.R. has submitted that the explanation of the assessee is unbelievable and therefore, rightly rejected by the authorities below. 5 We have consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee cross-objections of Smt. Jyoti Charla, Smt. Shashi Charla and Shri Atul Charla. 23. Ground No. 2 of the cross-objection in the case of Shri B.R. Charla reads as under: "Whether the learned CIT(A) has erred in law and facts of the circumstances of the case in disallowing a relied of addition made by the AO on account of bank deposits amounting to Rs. 2,58,000 out of total deposits amounting to Rs. 23,39,200 ?" 24. It is submitted by learned Authorised Representative of the assessee that learned CIT(A) was not justified in confirming the addition to the extent of Rs. 2.58 lakhs out of total deposits amounting to Rs. 23,39,200. It is submitted by him that for serial No. 3 regarding deposit of Rs. 31,000 on 14th June, 1996, amounts w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn partnership M/s AWI or from his own bank. There is finding recorded by the learned AO or by learned CIT(A) that apart from depositing these cash into bank as explained by the assessee, there was any other user by the assessee of these amounts and in the absence of that, simply because there was a time gap, the explanation of the assessee cannot be rejected and hence the addition confirmed by the learned CIT(A) is not correct. We, therefore, delete the same. This ground of the assessee is allowed. 6 In view of the facts and circumstances of the case as well as the decision of Co-ordinate bench of this Tribunal, we are of the view that the assessee has duly explained the source of deposits of 15 lakh in the bank account, being the withd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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