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Gordhan Versus. ITO, Ward 1 (2)

2015 (10) TMI 2479 - ITAT DELHI

Addition u/s 68 - there is a gap of 5 months between the withdrawal of the cash from the Bank account and re-deposit of the same in the Bank account - Held that:- No addition can be made u/s. 68 of the I.T. Act on the sole reason that there is a time gap of 5 months between the date of withdrawal from bank account of the cash in question and the redeposit of the same in the Bank Account, unless the AO demonstrates that the amount in question has been used by the assessee for any other purpose. I .....

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ment Year 2011-12. 2. The facts in brief are brought out by the Assessing Officer in his order 10.2.2014 vide para no. 2 & 3 which are extracted below for ready reference. 1. The assessee is a regular employee in Haryana Police Department as Assistant Sub Inspector. During the financial year 2010-11, for the assessment year 2010-11, he filed his return of income declaring total income of ₹ 1,91,560/- on 31.7.2011. The case was processed u/s. 143(1) on 31.10.2011 as N.A. 2. After that t .....

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xed time and again. The Ld. AR submitted the requisite information which was test checked and placed on record. 3. The AO considered the explanation of the assessee and rejected some explanations and assessed the total income at ₹ 9,91,562/-, after making the addition of ₹ 8 lacs u/s. 68 of the I.T. Act, 1961. 4. On appeal the Ld. CIT(A) has upheld the order of the AO. 5. Aggrieved, the assessee is in appeal before me on the following grounds:- 1. That on the facts and in the circums .....

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e s case on similar facts. 3. That on the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in sustaining the addition of ₹ 8 lacs made by AO on account of cash re-deposited from available cash duly substantitated on the basis of self presumed reasoning. That the appellant craves leave to add, to, amend, modify, rescind, supplement or alter any of the grounds stated herein above, either before at the time of hearing of this appeal. 7. Ld. Counsel of the Assessee, Shri .....

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ts. He submitted that the First Appellate Authority has wrongly held that the explanation of the assessee is not justified. He pointed out that the assessee maintained the cash book and the copy of the same was filed before the AO as well as ld. CIT(A). He argued that the books of accounts have not been rejected and in such circumstances the additions made on presumption and inference, cannot be sustained. He relied upon the decision of the Tribunal, E , Bench, New Delhi in ITA No. 3644/Del/2008 .....

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mt. Rakhi Vimal on the other hand submitted that the AO, as well as the ld. CIT(A) considered the cash book of the assessee. She submitted that the case law relied by the assessee cannot be applied to the facts of the case, for the reasons that the assesee has not explained the purpose of withdrawal and the gap of 5 months between the withdrawal and the re-deposits. She pointed out that the Ld. CIT(A) at page no. 6 vide para no. 3.2 recorded that there is a particular pattern of re-depositing th .....

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account. An addition made, solely on this ground cannot be sustained. In this regard, I draw support from the decision of the ITAT, Delhi in the case of AICT vs. Baldev Raj Charla 121 TTJ (Del) 366 wherein it has been held as under:- We have heard the rival submissions and perused the material available on record and have gone through the orders of the authorities below. We find that this explanation of the assessee was found correct that against these five deposits on dated 14th June, 1996, &# .....

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