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2015 (12) TMI 355 - ITAT LUCKNOW

2015 (12) TMI 355 - ITAT LUCKNOW - TMI - Unexplained source of cash deposit in bank and money used for purchase of FDR - Held that:- The surplus of cash withdrawal from bank during financial year 97-98 over cash deposit in bank in that year, amounts to ₹ 13,59,000/- out of cash in hand shown by the assessee as on 01/04/98 at ₹ 14,16,946/-. The difference being excess opening balance of cash in hand as on 01/04/98 over and above extra cash withdrawal from bank during financial year 97 .....

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assessee is not in a position to explain the source of such cash in hand or in bank during financial year 97-98, addition may be made as per law in assessment year 98-99 but the same cannot be considered for making any addition in assessment year 99-2000 and the cash in hand shown by the assessee in present year over and above the surplus of cash withdrawal over cash deposit in bank of ₹ 57,946/- deserves to be accepted being cash in hand with this lady of 63 years old at the beginning of .....

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order of Learned CIT(A), Bareilly dated 27/03/2012 for the assessment year 1999-2000. 2. In this appeal the assessee has raised the following grounds: 1. The learned CIT(A) has grossly erred in enhancing the income of the assessee by a sum of ₹ 10,30,946/- thereby confirming an addition of ₹ 14,16,946/- in the hands of the assessee. 2. The learned CIT(A) has erred in treating the opening balance of cash in hand on 01/04/1998 appearing in the cash book , as income of the assessee. 3. .....

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life time. On his death, the liquid assets were inherited by the assessee. Since she suffered from Polio she did not marry and has ever since worked for charity. She was earlier employed as a teacher and thereafter became the Principal of Wood Row School Society, Bareilly. In the year relevant for A.Y. 1999-2000, she was aged 54 years and had no major investments. All her savings were held by her either in bank or in cash. Her remuneration ranged from ₹ 70,000/- to ₹ 1,00,000/- per .....

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od 01.04.1997 to 31.03.1998 is on pages 13 to 15 of the paper book, the same may kindly be perused. The same would reveal that the assessee has deposited a sum of ₹ 9,76,790/- in the bank and has withdrawn a sum of ₹ 16,08,000/- from the banks inclusive of refund of advance for purchase of property in the same period during the entire year. Leaving aside the opening cash balance of ₹ 7,95,736/- as on 01.04.1997, (for the moment) the cash withdrawn by the assessee during this pe .....

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iod ending on 31.03.1997, which was received back on 31.07.1997 (confirmation attached). By refund of this amount, the closing balance as on 31.03.1998 came to be ₹ 14,16,946/-. The return of income for the A.Y. 1999-2000 to 2002-03 were filed on 11.09.2002, much before the notice u/s 148 dated 27.03.2006 was issued. It cannot be said that the filing of returns were an afterthought. The returns having being filed, the revenue could have proceeded to frame the assessment in accordance with .....

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s Principal of Wood Row School Society. She had no liability in the past nor did she ever have any liability or any family commitments. As submitted earlier, since she was physically handicapped, unmarried, she was totally dependent upon her parents and after their demise on her brothers namely Shri Gul Vani and Late Prem Vani. Thus, it cannot be said, that the assessee could not have saved amounts as deposited by her in her bank account. The action of CIT(A) of enhancing the addition of ₹ .....

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of the assessee for the reason that the explanation given by the assessee has not been found to be false. At the same time the AO has not brought any material on record to establish that the assessee had some other source of income in addition to the income which she received from Wood Row School Society. The period of 30 years first as a teacher and thereafter as a principal is a fairly long period and cannot be overlooked, at the same time the probability of savings cannot be ruled out. It has .....

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e-tax Officer in the matter of treating the source of investment which has not been satisfactorily explained by the assessee as the income of the assesses and the Income-tax Officer is not obliged to treat such source of investment as income in every case where the explanation offered by the assessee is found to be not satisfactory. The question whether the source of the investment should be treated as income or not under Section 69 has to be considered in the light of the facts of each case. In .....

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.2013 ii) Dy. CIT vs. Satish Chandra Pandey, ITA No. 25/LKW/2010 A.Y. 2001-02, Date of Order: 30.03.2011 iii) ACIT vs. Smt. N. Sasikala, ITA No. 435/Mds/197 A.Y. 1991-92, Date of Order: 07.12.2004 iv) Kiran Devi vs. ACIT, ITA No. 1129/DEL/2008 A.Y. 998-99, Date of Order: 09.02.2010 v) CIT vs. Prameshwar Bohra, IT Appeal No. 7 of 2003, High Court of Rajasthan, Date of Order: 04.01.2007 In view of the above submissions, it is submitted that against total withdrawals and deposits made in the bank, .....

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ed. 4. He also submitted a copy of assessee s cash book for the financial year 96-97 and 97-98, which are available on pages 10 to 15 of the paper book and similarly copy of cash book for financial year 98-99, which is available on pages 35 to 42 of the paper book. He also submitted that the copy of assessee s bank account with Punjab National Bank is also available in paper book. He further submitted that the availability of the cash in hand with the assessee as on 01/04/98 of ₹ 14,16,946 .....

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t during the period from July 97 to March 98, the assessee has deposited money in various bank accounts of ₹ 2.39 lac only and in this manner, the extra withdrawal during this period after reducing deposit of cash during this period was ₹ 12.59 lac. The opening balance as on 01/07/97 was ₹ 1,67,946/- which also includes withdrawal from bank of ₹ 1.10 lac in the month of May 97. He submitted that under these facts, it has to be accepted that the cash available with the ass .....

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Assessing Officer of ₹ 5,87,693/- on the basis that the assessee could not explain the source of cash deposit in bank and money used for purchase of FDR. The details of such addition is available on pages 4 & 5 of the order of CIT(A). As per the same, an amount of ₹ 1 lac is on account of transfer entry for PNB, Rajendra Nagar Branch and the 2 amounts of ₹ 50,822/- and ₹ 50,871/- are on account of FDR maturity. The total of these three amounts comes to ₹ 2,01,69 .....

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lained by the assessee and thereafter, excluding ₹ 3.8 lac added by Assessing Officer on account of unexplained cash deposit in bank account, enhancement is made of ₹ 10,30,946/-. Hence, it is seen that the moot question is whether the assessee has been able to explain the source of opening cash in hand as on 01/04/98 shown by the assessee in her cash book, copy available on pages 35 to 42 of the paper book. If the same is found proper, neither the addition made by the A.O. survives .....

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