TMI Blog2013 (6) TMI 522X X X X Extracts X X X X X X X X Extracts X X X X ..... 31/03/2008 was redeposited. But still, there was a slight gap in the cash deposit made during the financial year 2008-09 to the extent of Rs.18,85,945/- That gap of Rs.1,68,151/- remained unexplained. Addition as income from undisclosed sources - Long term capital gain on sale of jewellery - Held that:- Statement of wealth relevant for AY 1988-89 wherein there was a disclosure of jewellery and ornaments as per Valuer's Report of Rs.1,01,275/-. Further, there was a disclosure of ornament of 298 grams and the value of the same at that assessment year was disclosed at Rs.88,893/-. The mention of the gold ornaments was also made in the balance-sheets furnished before the Revenue Authorities as evidenced by few letters placed on record. Thus if the AO has disbelieved the explanation of the assessee, then he should have made enquiries with the said jeweller instead of presuming that the sales bills were simply arranged by the assessee. The AO has also not denied the fact that in the past the jewellery was actually disclosed in the wealth tax return, thus hereby direct to compute the capital gain on sale of gold ornaments and tax in the hands of the assessee - in favour of assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ):- "..... in respect of the cash deposited in the SB A/c with Bank of India aggregating Rs.18,85,945/-, we are submitted a cash flow statement from FY 2002-03 onwards till FY 2008-09 along with Xerox copies of the bank Pass Books of the relevant years - which shows the cash withdrawn/deposited by the assessee from/to the said Bank account. The said cash flow statement reveals that the assessee is having sufficient cash by way of on hand balance at the beginning of the year and cash withdrawn during the year for depositing the cash in the bank account in the FY 2008-09 relevant to the AY 2009-10..... ." 3.1. The AO was not convinced and noted down certain reasons for not accepting the correctness of the cash flow statement. It was noted by the AO that the assessee had not maintained the regular books of accounts, therefore the availability of the cash was not verifiable. According to AO, the assessee has also not furnished the statement of assets and liabilities. It has also been noted by the AO that the assessee had never utilized the cash, therefore the statement was not authentic. According to him, the assessee could not furnish any reason as to where the cash sum withdrawn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly, the action of the AO was confirmed. 5. From the side of the appellant, ld.AR Ms.Urvashi Shodhan appeared. She has vehemently pleaded that the assessee being a salaried employee, hence prepared his accounts on his own, hence those were handwritten but merely being handwritten should not be discredited. The assessee has prepared the date-wise availability of cash balance with the help of the corresponding withdrawals and deposits from the bank. The cash which was available at the end of the year was taken as an opening balance for the next year. In that manner, the year-wise availability of cash with the assessee was computed. The assessee has also shown the year-wise expenditure towards house-hold, etc. She has repeated that the assessee being a salaried employee, hence there was no requirement of maintaining a daily cash book as unduly expected by the CIT(A). She has also strongly objected the defect as pointed out by ld. CIT(A) in the cash flow statement. She has informed that on 29th May-2007, there was a cash withdrawal of Rs.1,80,000/- from the bank which resulted into cash balance in the hands of the assessee at Rs.9,78,771/-. For the accounting period ended on 31/03/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not questioned by the AO. From the bank statements as also from the cash flow statements prepared by the assessee, we have noted that there was a pattern of regular withdrawals in round figures on several occasions. There were huge withdrawals as pointed out to us, such as, a sum of Rs.1,80,000/- on 29/05/2007, then again a withdrawal of Rs.1 lac on 6/09/2007, further there was a withdrawal of Rs.2 lacs on 25/10/2007, then a withdrawal of Rs.70,000/- and Rs.1 lac in the month of December-2007. If those withdrawals have not been found utilized by the assessee towards investments, then naturally those were available with the assessee to be used or redeposited in the bank as per his desire/sweet will. The AO has drawn a conclusion that it was not humanly possible and against the human tendency. However, it was merely a supposition and such a presumption has no cogent legal basis. As far as the furnishing of cash flow statement was concerned, naturally it was not made out of the cash book maintained by the assessee, since it was not required being a salaried person, but it was prepared on the basis of the bank statements of the assessee. The entries in the bank should not be doubted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the AO that the assessee had disclosed long term capital gain on sale of gold. The foremost objection of the AO was that the assessee did not own any gold ornaments and the sales bills have been arranged by the assessee. On the other hand, the claim of the assessee was that the sales proceeds of gold ornaments were received through cheques and the bill of the jewellery has also been placed before the AO. The AO was not convinced and the full sale proceeds of Rs.3,99,991/- were taxed as income from undisclosed sources. 9. When the matter carried before the ld.CIT(A), the action of the AO was affirmed. 10. We have heard both the sides and also perused the material placed before us. We have noted that the AO had reproduced the following chart:- Sr.No. Sale date Sale Amount Cheque date Cheque No. Cheque Amount Vendor Name 1. 14/06/2008 99991 14/06/2008 0393340 Rs.99,991/- M/s.Shreeji Art Jewellery 2. 06/02/2009 90002 02/03/2009 000075 Rs.3,00,000/- 3. 09/02/2009 95004 4. 10/02/2009 97004 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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