TMI Blog2014 (11) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... hese loans, on being repaid, were redeposited in the bank account is not tenable and is merely a self serving statement and the confirmations filed by the assessee are merely self serving documents when seen in the context of the facts and circumstances of the case – assessee was not in physical possession of the cash with him which has been withdrawn by him on earlier dates - the bank account was not disclosed in the return of income. Assessee has made only vague submissions without specifically bringing any material to rebut the discrepancies - the source of cash deposited in the bank account maintained with HDFC Bank on various dates is held to be unexplained - no material was placed to contradict the findings of the CIT(A) – thus, CIT(A) was justified in holding that the assessee did not prove the cash deposits in the bank account and correctly brought to tax the amount deposited u/s 69A – the order of the CIT(A) is upheld – Decided against assessee. - ITA No. 4174 & 4175/Mum/2012 - - - Dated:- 20-10-2014 - Shri D. Manmohan And Shri Sanjay Arora,JJ. For the Appellant : None For the Respondent : Shri Vivek A. Perampurna ORDER Per D. Manmohan, V.P. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the orders passed by the learned CIT(A) no material, whatsoever, was placed before us to contradict the findings of the CIT(A). Though separate orders were passed for each assessment year, the corollary of events being same, for the sake of ready reference we extract para 3.3.1 to 3.3.5 of the order passed by the learned CIT(A) for AY 2007-08, which is self-explanatory and highlights that assessee's explanation is vague: - 3.3.1 I have considered the facts of the case and the submissions made by the assessee. During the appellate proceedings, the Ld. AR has furnished a date wise summary of the cash withdrawn and cash deposited in the HDFC Bank account in question which is enclosed as Annexure- A with this appellate order. From the said Annexure-A, it is seen that the total cash withdrawn during the period 01/04/2006 to 29/03/2007 (the entire financial year) is Rs, 8,56,600/- whereas the total cash deposited in the bank accounts is ₹ 15,39,000/-. The assessee has shown opening cash balance of ₹ 19,11,020/- as on 01/04/2006. From the pattern of withdrawals and deposits as per the said Annexure- A , it is further noted that the assessee has made withdrawals of sm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hand itself without resorting to withdrawals from the bank accounts in cash. If the assessee had utilized these amounts for giving loans to his friends and relatives as claimed by him, there was no necessity to withdraw the cash from the bank for this purpose since more than sufficient cash was already available with him in hand as claimed by him. The claim of the assessee that he had given temporary loans to his friends and relatives and these loans, on being repaid, were redeposited in the bank account is not tenable and is merely a self serving statement and the confirmations filed by the assessee are merely self serving documents when seen in the context of the facts and circumstances of the case. The confirmations filed by the assessee from the so called friends and relatives are standard confirmations which read as follows :- TO WHOMSOEVER IT MA Y CONCERN I have taken temporary loan of ₹ 10,000/- to ₹ 15,000/- frequently from Shri Janzeb Amir Kamal Khan. I have repaid these loans promptly to Mr. Janzeb Amir Kamal Khan. At present there is no amount due to him. I am not income taxpayer. From the above, it is evident that the so called friends and rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de. Mere withdrawals made on earlier dates does not prove the physical availability of cash in hand unless the assessee is able to justify that such cash withdrawn was available with him and not spent any where for other purposes. Under such circumstances, it is amply clear that the appellant was not in physical possession of the cash with him which has been withdrawn by him on earlier dates. In view of the aforesaid reasons, the contention of the assessee that it had cash-in-hand of ₹ 19,11,020/- as on 01/04/2006 and that the cash was deposited out of the cash-in-hand available with him, or that loans given to friends and relatives when repaid were deposited in the bank account or that the withdrawals made from the bank account for development of new business was redeposited in the bank accounts cannot be accepted. The contention of the assessee defies any logic. It is an admitted fact that the bank account was not disclosed in the return of income. 3.3.4 In the case of Ashok Mahindru Sons (HUF) 173 Taxman 178 (Del), it has been held that if there is enough material to raise a strong suspicion regarding nature of transaction, the authorities can reject the documents and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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