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TMI Blog2014 (6) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. 3. The facts relating to the issue cited above are discussed in brief. During the course of assessment proceedings, the assessee submitted the details of his two bank accounts maintained with M/s Axis Bank, Brivali (W) branch, Mumbai. On examination of the above said bank accounts, the AO noticed that the assessee has made huge deposits in both the bank accounts. The AO worked out the aggregate amount of credits found in both the bank accounts as Rs.55,37,660/-. The aggregate amount of cash deposits found was worked out at Rs.58,41,870/-. The aggregate amount of withdrawals made from the above said bank accounts was worked out at Rs.53,39,720/-. The AO noticed that the assessee has been using the withdrawals for making fixed de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the opening balance could not be assessed in the year under consideration. When this contention was put to the Ld D.R, the Ld. Departmental representative fairly conceded that the above said opening balance cannot be assessed during the year under consideration, since it relates to the immediately preceding year. In view of the above, we direct the AO to delete the assessment of Rs.4,73,438/- relating to the opening balance of the bank account cited above. 6. During the course of hearing, the Ld A.R submitted details of withdrawals, which were not re-deposited into the bank account. The aggregate amount of such kind of withdrawals was worked out by the assessee at Rs.11,58,389/-. We have already noticed that the assessee has contended t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after affording opportunity of being heard to the assessee. 8. With regard to the remaining amount of additions, the submission of the assessee is that the withdrawals made on earlier dates were used for making deposits in the subsequent dates. Accordingly, it was sought to be explained that, only the peak credit balance of the deposits can be treated as the income of the assessee. According to the Ld A.R, the peak credit balance in both the accounts was Rs.9,67,149/-. Against the same the assessee has claimed reduction of the opening bank balance, income declared in the return of income. The assessee has also increased the peak credit balance with the amount of withdrawals, which were not re-deposited and also with the amount of expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h book on the above said date of 04.04.2008. Hence, as on 04.04.2008, the cash balance will turn into a Nil figure. The cash book should be so continued thereafter. The negative cash balance noticed in any of the subsequent dates should also be taken as the income of the assessee and should also be taken as a source on the very same date. 11. It is also to be noted that the withdrawals, which were not redeposited, should not find place in the working of peak credit balance. Since the AO has not brought on record any material to show that the cash withdrawals made on earlier dates were not used for any other purpose, in our view, it would be reasonable to accept that the said withdrawals were used for making subsequent deposits. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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