TMI Blog2013 (9) TMI 1100X X X X Extracts X X X X X X X X Extracts X X X X ..... in the bank account. The assessee has offered a plausible and satisfactory explanation before the A.O. for each financial transaction. He had not brought on record any evidence which proves that cash withdrawal had been invested somewhere else and cash balance in the cash book is artificial. Thus, we confirm the order of the CIT(A).- Decided against revenue - ITA No. 674/Ahd/2013 - - - Dated:- 27-9-2013 - Shri G.C.Gupta, Vice President and Shri T.R. Meena, Accountant Member By Appellant:- Shri P. L. Kureel, Sr. D.R. By Respondent:- None ORDER PER : Shri T.R.Meena, Accountant Member This is an appeal at the behest of the Revenue which has emanated from the order of CIT(A)-VI, Baroda, dated 31.12.2012 for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for other purposes and cash balances shown in the cash books is artificial. The A.O. also held after verification of bank statement various persons had been utilized for withdrawals of this cash, which are other than the assessee has employees. He further relied in case of Sumati Dayal Vs. CIT (1995) 214 ITR 801 (SC) Sreelekha Banerjee (1963) 49 ITR 112 (SC), held as under: Where any sum is found credited in the books of the assessee for any previous year, the same may be charged to income-tax as the income of the assessee of that previous year if the explanation offered by the assessee about the nature and source thereof is, in the opinion of the Assessing Officer, not satisfactory. In such a case there is, prima facie, evidence a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the law with regard to the limit of cash carried from day to day and also there is no requirement with regard to the reasons for carrying such cash balances. According to him once the source of deposit is explained subsequent withdrawal is not required to be explained. There can be an addition on account of source there could not be addition of withdrawals from explained sources. No doubt there is no limit of cash balance prescribed in the Act or Rules and secondly the AO cannot dictate to the appellant as to how to conduct business. However, the question is not with regard to the rights of the appellant but it is concerning the fairness and truthfulness of the accounts maintained as well as how fairly the business is being conduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash balance during the year. Under the circumstances, addition of ₹ 7,95,160/- on account of unaccounted income is being confirmed and the assessee gets relief ₹ 31,75, 604/-. This ground of appeal is partly allowed. 4. Now the Revenue is before us. Ld. Sr. D.R. vehemently argued that the appellant used whatever cash withdrawal from the bank for other purposes, he had not established direct linkage between cash withdrawn and cash deposit. Therefore, A.O. was right to make the addition of ₹ 39,70,500/-. No one appears from the assessee side. Therefore, we decide this case on the basis of facts available in the file. During the course of assessment proceeding, the assessee had produced cash book and copy of the bank ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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