New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (1) TMI 616 - ITAT MUMBAI

2016 (1) TMI 616 - ITAT MUMBAI - TMI - Unexplained cash deposits in the assessee's, a salaried person, bank account - Held that:- The assessee has not specified the cash required for house-hold and/or personal purposes, as well as toward investments, if any, made from f.y. 2005- 06 onwards, to have any purposeful assessment of the cash with him in June, 2007 and January, 2008, whereat excess cash of ₹ 3.50 lacs and ₹ 0.25 lacs is stated to be available.

Further still, ther .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

amount is outstanding for payment even to date - so much for the temporary loans.

As regards the cash deposit of ₹ 25,000/-, the same has been explained as sourced from the cash withdrawal during the current year. The same only implies a reduction in the cash withdrawal for the year by ₹ 25,000/-. The least that the assessee is therefore required to state is the cash withdrawal for the year, i.e., upto 27.1.2008. The cash withdrawal for the year has already been observed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t : Shri B S Bist ORDER Per: Sanjay Arora: This is an Appeal by the Assessee directed against the Order by the Commissioner of Income Tax (Appeals)-22, Mumbai ('CIT(A)' for short) dated 01.09.2014, dismissing the Assessee's appeal contesting its assessment u/s.143(3) of the Income Tax Act, 1961 ('the Act' hereinafter) for the assessment year (A.Y.) 2008- 09 vide order dated 27.12.2010. 2. Per Ground 1, reproduced as under, the assessee raises the issue of the order u/s.143(3) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

contend non-issue of notice u/s. 143(2), so that by implication no notice there-under stood issued. As for the basis of this claim; no such objection having been raised before either the assessing authority or the first appellate authority, he would draw attention to the assessment order, which states of notice u/s. 143(2) being issued on 08.5.2009 (refer para 1 of the assessment order). How could this be a valid notice when the return of income itself was furnished only on 09.7.2009, he assever .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

there being a notice u/s.143(2) even prior thereto, on 17.08.2010, i.e., the very same dates on which notices u/s. 142(1) stand issued and served on the assessee (refer pg. 1 of the assessment order). He did not raise any objection. Accordingly, the assessee's challenge vide its Ground 1 fails. 3. Ground No. 2, which raises the issue of the A.O. not following the CBDT Instruction dated 08.09.2010, was not pressed at the time of hearing nor, accordingly, responded to by the Revenue, and is a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e reason. 5. Before me, the assessee's principal plea was that in-as-much as he is not running any business or profession, he does not maintain any books of account, so that no addition u/s.68, as effected, could be made. Further, on the merits of the addition, i.e., on the factual aspect, it was submitted that the assessee had cash withdrawal of ₹ 7.93 lacs and ₹ 2.20 lacs for the financial years 2005-06 and 2006-07 respectively, which would justify an opening cash in hand of &# .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

explained during hearing itself, the addition is toward unexplained cash deposit in his bank account during the year. The same would fall u/ss. 69/69A as the cash deposit in his account implies, firstly, unexplained cash-in-hand (to that extent) and, two, the bank account itself qualifies to be money and, in any case, investment. As explained in CIT vs. Jauharimal Goel [2005] 147 Taxman 448 (All), the two, i.e., the unexplained credit and unexplained money only represent two different aspects o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ession? Not maintaining of books of account, thus, would be of no assistance to the assessee. It is even otherwise trite law that the exercise of a power would be referable to a jurisdiction which conferred validity upon it and not to a jurisdiction under which it would be nugatory (refer: L. Hazarimal Kuthiala vs. ITO [1961] 41 ITR 12 (SC) As long as, therefore, the action of the A.O. has the sanction of law, it could matter little if he does not refer to the appropriate provision; the provisio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e has nowhere submitted a cash flow statement for the relevant years. The cash-in-hand would, therefore, have to be justified in terms of the cash withdrawal from the bank (or any other source), and its utilization. What, one may ask, as does the Revenue, is the purpose of cash accumulation? True, the cash withdrawal of nearly ₹ 8 lacs during financial year 2005-06 could lead to cash-in-hand. But, then, nobody would withdraw cash only to maintain cash-in-hand, and continue doing so in-asmu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.6.2007 being at ₹ 40,000/- only. Further, though date-wise cash withdrawal is not available, it is clear that cash was withdrawn at ₹ 2.20 lacs for the following year (f.y. 2006-07), and also for the current year, implying utilization of the cash-in-hand, if any, available. The assessee has not specified the cash required for house-hold and/or personal purposes, as well as toward investments, if any, made from f.y. 2005- 06 onwards, to have any purposeful assessment of the cash with .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version