TMI Blog2014 (6) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... has assessed the “peak credit amount” shows that he has also accepted the theory of human probabilities, i.e., the AO has accepted the fact that the past withdrawals were utilised to make future deposits, which is a normal human behavior. The claim of the assessee that he has used the withdrawals made in the FY 2003-04 also for making deposits in the FY 2004-05 should be accepted - the claim that he was having savings out of his past income could not also be ruled out - the claim that the gold stock was converted into cash and then reconverted into gold stock is hard to believe - assessee may be given credit for the claim of past savings and for withdrawals made from the bank account in the FY 2003-04 - if the amount available with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further a sum of Rs.5.53 lakhs in the form of gold jewellery was declared under VDIS scheme. (b) he has won Kuri amount to the tune of Rs.4.80 lakhs during the immediately preceding year and the said proceeds were also deposited in the very same bank account. (c) he has been converting his gold stock into cash and reconverting the same from cash to gold, depending upon his business convenience. (d) he has used his past savings, gold stock and kuri amount for making deposits into the bank account. The earlier withdrawals were also used for making future deposits. The AO did not accept the above said explanations furnished by the assessee, since the assessee did not furnish any material to substantiate his explanations and further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dates during the course of year. In the mean time, he also redeposited the same during the course of financial year 2003-04, i.e., in the immediately preceding year. The bank balance as on 31.3.2004 was Rs.170/- only. Accordingly, the Ld A.R submitted that the assessee has withdrawn entire amount in the immediately preceding year and also used the same for making deposits in the succeeding year. Accordingly, he submitted that the assessing officer was not justified in ignoring the withdrawals made in the immediately preceding year. The Ld Counsel submitted that the assessee has declared a sum of Rs.11.00 lakhs as his income over the years and used savings made out of the same and also the gold stock of Rs.5.53 lakhs declared under VDIS sche ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contention of the assessee is that the amount withdrawn from the very same bank account in the immediately preceding year, i.e., in financial year 2003-04 should also be given credit. The assessee has furnished copy of bank account for the immediately preceding year and we notice that the peak credit balance in that year was Rs.4,84,771/- and it was available on 26.05.2003. The assessee has explained that the Kuri receipts of Rs.4,80,000/- was deposited on that date and the assessee has furnished evidences showing kuri receipts of Rs.4,80,000/- in the paper book. Besides the above, the assessee is pleading that the past savings made and also the gold stock declared under VDIS scheme were also utilised in making deposits and withdrawals. Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abilities, i.e., the assessing officer has accepted the fact that the past withdrawals were utilised to make future deposits, which is a normal human behaviour. By extending the same, we are of the view that the claim of the assessee that he has used the withdrawals made in the financial year 2003-04 also for making deposits in the financial year 2004-05 should be accepted. Further the claim that he was having savings out of his past income could not also be ruled out. However, the claim that the gold stock was converted into cash and then reconverted into gold stock is hard to believe. 9. Accordingly, we are of the view that the assessee may be given credit for the claim of past savings and for withdrawals made from the bank account in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
