9911796707
TMI Blog2012 (10) TMI 1099X X X X Extracts X X X X X X X X Extracts X X X X ..... s filed on 31.10.2007 disclosing income at Rs. 4,48,921/-. The assessee was having a loan account No.011500NC00000476 at PNB, Civil Lines, Delhi. The outstanding balance as on 01.04.2006, i.e. a first day of the financial year was of Rs. 27,95,067/-. The part of the loan was repaid during the relevant financial year by making cash payments, details of such cash repayment are as under :- Date Amount 04.04.2006 Rs. 60,000/- 30.06.2006 Rs. 1,11,000/- 04.11.2006 Rs. 37,000/- 10.11.2006 Rs. 37,000/- 29.11.2006 Rs. 37,000/- 16.12.2006 Rs. 7,00,000/- 08.01.2007 Rs.14,20,029/- Total : Rs.24,02,029/- The assessee did not file any reply or explanation cash repayment before the Assessing Officer. Assessing Officer made the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1-2007, and of Rs. 6,25,000/- on 6-1-2007, and withdrawal from his capital account of Rs. 2,66,352/- on 8-1-2007. It should be noted that there is no plausible reason for the proprietor to withdraw money partly through his current account and partly through his capital account on the same day. Being a proprietary business, there was no question of limits to his drawings. The withdrawal of Rs. 5,05,352/- through current account and of Rs. 1,93,648/- through his capital account on 14-12-2006 to make a deposit of Rs. 7,00,000/- on 16-12-2006 in the loan account, defies logic and rationale. The deposit of Rs. 14,20,029/- on 8-1-2007 in the PNB home loan account is also explained to be out of three withdrawals, two from the current account and o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... negative cash balance on 4 dates, which casts doubt upon the veracity of the audit carried out by M/s Singh & Jaiwal, chartered accountants. The withdrawals claimed to be made in odd amounts through current account and capital account on the same date, do not inspire confidence. After considering the various facts and circumstances, it is held that the claim of opening cash balance of Rs. 16,40,302/- is not satisfactorily proven. The claim of a current account used for withdrawals and deposits in cash is also not accepted as this explanation has been furnished for the first time during the appellate proceedings and is not reflected in the audited balance sheet. Even the capital account filed during the appellate proceedings does not tally w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has challenged the sustenance of addition of Rs. 16,40,302/- by claiming that the addition has been sustained by ignoring the balance sheet as on 31.03.2006 and ignoring the past tax record of the assessee. We have considered the submissions of both the sides. The assessee claimed that in the consolidated cash flow statement for Assessment Year 2006-07, there is an opening cash balance of Rs. 16,40,302/- and cash withdrawals from the capital account, current account and bank accounts. This balance sheet as on 31.03.2006 showing the cash balance of Rs. 16,40,302/- was not filed along with the return of income for Assessment Year 2006-07. The cash book produced to explain cash balance also shows negative balance on certain dates ..... X X X X Extracts X X X X X X X X Extracts X X X X
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