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Haresh N. Shah Versus ITO Ward 24 (1) (1) , Mumbai

2015 (10) TMI 1465 - ITAT MUMBAI

Unexplained cash credit under section 68 - Held that:- there is no material brought out by the Revenue to doubt the bonafides of explanation furnished by the assessee with regard to the build-up of cash in hand and the deposits in the bank account as and when assessee required certain cheques to be cleared in the bank. Moreover, factually speaking, whenever the impugned deposits were made by the assessee, there was a positive balance of cash in hand. There does not appear to be any negative bala .....

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RI G. S.PANNU AND SHRI SANJAY GARG, JJ. For The Appellant : Shri Dhiren P. Talati For The Respondent : Shri Sunil Kumar singh ORDER PER G. S.PANNU, A.M: The captioned appeal is preferred by the assessee and it is directed against the impugned appellate order dated 25/09/2012 passed by CIT(A)-34, Mumbai pertaining to the assessment year 2008-09, with reference to assessment order dated 28/12/2010 passed in terms of section 143(3) of the Income Tax Act, 1961(in short the Act). 2. In this appeal, t .....

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#8377; 4,07,550/-, which was subject to scrutiny assessment. The Assessing Officer noticed that assessee was maintaining saving bank account with three banks, namely, ICICI Bank, HSBC Bank and the Bank of India. It was noticed by the Assessing Officer that assessee had deposited cash to the tune of ₹ 19,39,790/- in the three bank accounts. Assessing Officer treated the cash deposits in the three banks accounts, totaling to ₹ 19,39,790/-, as unexplained for the reason that no explanat .....

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he CIT(A) analyzed the aforesaid explanation of the assessee and rejected the same on the test of human probabilities, as according to him, no person would withdraw cash from one account only for the purpose of redepositing it into another account. Accordingly, he sustained the addition made by the Assessing Officer. Against the sustenance of addition of ₹ 19,39,790/- under section 68 of the Act, assessee is in further appeal before us. 4. Before us, Ld. Representative of the assessee cont .....

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ch of the three bank accounts, which inter-alia, shows the amount of cash withdrawn at various dates. On the said basis, it is canvassed that assessee has first withdrawn from either of the three saving bank accounts and then re-deposited the same in either of the three saving bank accounts and on this basis the source of cash deposits are sought to be explained. The factual assertions made by the assessee are borne out of the cash flow statement furnished by the assessee and we find that even t .....

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k, wherein he has placed a Note explaining the circumstances under which assessee was regularly withdrawing the cash and re-depositing it into bank accounts, whenever it was required. It has been explained that the business of the assessee was under a strain because his main family concern namely, M/s. Toto Packaging Pvt. Ltd., owning a manufacturing unit at Vasai Mumbai, was flooded and had made losses. It has been pointed out that somewhere in June 2005, as a result of floods the factory had t .....

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al accounts also for enforcing recovery of loans. Therefore, assesssee used to withdraw whatever funds were available in the bank accounts and kept the cash in hand for running the household expenditure, etc. and the cash was put back into the bank account, as and when it was required to clear any cheques in order to meet liabilities on account of credit card payments, etc. It has been contended by the appellant that because of the aforesaid scheme of things, there was a buildup of cash in hand .....

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