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Mrs. Dolly Luthra, Indore, M.P. Versus ITO 21 (1) (1) , Mumbai

2016 (11) TMI 958 - ITAT MUMBAI

Addition u/s 68 - undisclosed cash deposited by the assessee in her bank account - Held that:- The assessee cannot prove that cash was not utilized elsewhere. In our opinion, the assessee as was very much at her liberty to keep availability of cash in such a manner so as to fulfill her family needs by withdrawing cash from her one bank account, keeping it with with her and depositing it into another bank account, in accordance with her family needs and other requirements especially after the dea .....

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er by the assessee - Held that:- We do not appreciate the approach followed by the Ld. CIT(A) in this regard. While rejecting the evidence submitted by the assessee, in case the Ld. CIT(A) felt some deficiencies in the confirmation, the same should have been confronted to the assessee. Alternatively, it was well within the powers of the lower authorities to get these facts directly verified from Ms. Sheetu Luthra whose complete particulars were there before them. Without properly examining the e .....

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hat assessee brought on record of complete details and findings on record, and copy of ledger account of Imperial College of Professional Studies was also submitted. When the Ld. CIT(A) himself believed the transaction to the extent of ₹ 1,80,000/-, there were no concrete basis to disbelieve the remaining amount of ₹ 20,000, merely because same was received in cash. The Ld. CIT(A) had full powers under the law to make direct verification from the said property in case there were any .....

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r): This appeal has been filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals), Mumbai- 22 {(in short CIT(A) }, dated 19.06.2014 passed against assessment order u/s 143(3) dated 13.12.2011 for the Assessment Year 2009-10 on the following grounds: 1.On the facts and in the circumstances of the case and in Law, the Ld Commissioner of Income Tax (Appeals) [here-in-af ter referred to as Ld. CIT (Appeals)] was not justif ied and erred in upholding addition of ₹ 13. .....

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Tax Act. 4.Without prejudice to any of the grounds raised above, the Learned CIT(Appeals) failed to appreciate that addition for unexplained credit under section 68 is not mandatory but is discretionary as evident from the words "the sum so credited may be charged to income-tax as the income" used in section 68. 5. That the appellant craves leave to add, to amend, modify, rescind, supplement or alter any of the Grounds stated here-in-above, either before or at the time of hearing of th .....

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of the case as culled out from the order of the lower authorities are that on the basis of AIR, the AO asked the assessee to explain the cash deposit of ₹ 15,90,000/- in assessee s saving bank account. Before the AO, it was inter alia explained by the assessee that all the financial affairs of the assessee were being looked after by her husband and after his unfortunate death, the assessee faced severe financial crisis and everything in this regard had gone haywire. It was also submitted t .....

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re, for some family needs. The AO was not satisfied with the justification of withdrawing and keeping cash idle and therefore the entire amount deposited in the Standard Chartered bank was found unexplained, and therefore same was added u/s 68 of the Act. 3.2. Being aggrieved, the assessee filed an appeal before the Ld. CIT(A) and furnished various details and evidences to explain the sources of the cash deposited into her bank account. The main thrust of argument of the assessee before the Ld. .....

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of the assessee. It was also submitted that this fact is not disputed that cash was withdrawn from the Corporation Bank. The assessee for her various family needs, has been withdrawing and depositing cash from one bank account to the other. No evidences have been brought on record by the lower authorities to demonstrate that cash withdrawn from the Corporation Bank was utilized elsewhere. Under these circumstances, the source of cash deposited into Standard Corporation Bank account stood duly ex .....

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ing is there on record to show that cash has been utilized elsewhere. Thus, in our view, the assessee has been able to successfully show the availability of cash. The requisite cash flow statement, etc. have been filed before the lower authorities. Nothing is there on record to show that cash withdrawn from the Corporation Bank has been utilized elsewhere. In case the AO was keen to allege that the cash withdrawn from Corporation Bank might have been utilised somewhere else, then the burden was .....

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r the death of her husband. In our view, the assessee has been able to successful prove the source of cash deposited in her account maintained with Standard Chartered Bank. Thus, addition made was illegal and incorrect on facts and therefore same is directed to be deleted. This ground is allowed. 4. Ground No.2: In this ground, the assessee has challenged the action of lower authorities in upholding addition of ₹ 98,507/- on account of cash deposited in bank account, the source of which wa .....

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ng was brought on record to substantiate the claim of the assessee. Before us, Ld. counsel of the assessee submitted that out of the total amount, a sum of ₹ 23,150/- was on account of reimbursement received from Imperial Academy for which admittedly no evidences could be submitted. But with regard to amount received from Ms. Sheetu Luthra, confirmation letter duly signed by her was submitted before the lower authorities. But, the same has been rejected after finding some faults therein th .....

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is noted that the same was received by the assessee from her daughter namely Ms. Sheetu Luthra. In support of this, a confirmation letter issued by Mrs. Sheetu Luthra was filed before the Ld. CIT(A) also. The same has been rejected on the ground that same was undated and the fact of payment of cash on 01.02.2009 was not explicitly mentioned therein. We do not appreciate the approach followed by the Ld. CIT(A) in this regard. While rejecting the evidence submitted by the assessee, in case the Ld .....

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avoided. Under these circumstances, in our opinion, the assessee had duly submitted the evidences with respect to said amount. Therefore, the AO is directed to delete sum of ₹ 75,350/-. Thus, this ground is partly allowed. 5. Ground No.3: In this ground, the assessee has challenged the action of lower authorities in making addition of ₹ 20,000/-. 5.1. During the course of assessment proceedings it was noted by the AO that aggregate amount of ₹ 2,00,000/- was received by the as .....

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