9911796707
TMI Blog2014 (12) TMI 1183X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is an individual having income from rent, share profit from partnership firm and income from other sources. The assessee officer received an information that assessee has deposited cash of Rs. 17,60,000/- in the bank account during the year as per following details:- S.No. Date of Deposit Amount deposited (Rs.) i 29.05.2008 5,00,000/- Ii 28.07.2008 1,00,000/- Iii 13.12.2009 5,00,000/- Iv 10.02.2009 4,35,000/- v 30.03.2009 1,25,000/- vi 31.03.2009 1,00,000/- In response to the show cause notice, the assessee submitted bank summary of Bombay Mercantile Corporation Bank and India Overseas Bank and it was stated that assessee has to participate in an auction for some imported materials for which assessee was required ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an sanctioned by Bank against LIC policies. 10.02.2009 4,35,000 30.03.2009 1,25,000 31.03.2009 1,00,000 Total 16,60,000/- The Ld.CIT(A) after examining the cash summary filed before him, observed that all the cash deposits have been made from the cash book maintained by the assessee. Further in the audited balance sheet as on 31.03.2008 filed along with the return of income, cash in hand of Rs. 8,53,529/- was shown, which was available with the assessee. The first cash deposit of Rs. 5 lakhs made on 29.05.2008 was deposited out of cash available in the cash book on that date. Likewise Ld. CIT(A), for each and every deposits examined the availability of cash with the assessee as recorded in the cash book. The relevant finding of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lized for some other purpose. There is no provision in the LT. Act requiring that cash once withdrawn has to be redeposited immediately if not utilized. It is well within the right of the appellant to keep the cash withdrawn with him according to the day to day requirements of the business and the businessman cannot be forced to redeposit the same in the bank if not utilized, as long as the proper entries of this cash in the books of accounts have been made. The time gap between the withdrawals and deposits is not of much relevance. 4.8. In order to establish the unexplained nature of cash deposits in the bank f account, the AO has to prove the same with some independent enquiries and by placing some evidence on record regarding its unexpl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash book and proceeded simply to make the addition on the ground that the time gap between the cash withdrawn from the bank and redeposit was long. As outlined above, there is no provision in the I.T. Act requiring that cash withdrawn, if remains unutilized, has to be redeposited immediately. Businessman has to see his requirement of the availability of cash and its utilization according to the needs of the business. In the process, if a businessman has to keep some cash in hand for day to day requirements and deposit the same after some period, there appears to be no illegality about such redeposit of cash in the bank as long as the same is through books of accounts. 4.11 In view of the facts and circumstances and judicial pronouncements ..... X X X X Extracts X X X X X X X X Extracts X X X X
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