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2014 (9) TMI 1073

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..... present case are clearly distinguishable as in the present case the explanation offered by the assessee is reliable and acceptable on the touchstone of the prudence of an ordinary man but merely on the ground that the act of assessee created huge interest liability on partnership firm does not enable revenue authorities to consider the cash withdrawn and it deposit to same bank account after a substantial gap of time, as unexplained income u/s 69 A of the Act. Hence, we reach to a conclusion that the AO made addition without any legal and justified reason which was rightly deleted by the CIT(A). - Decided in favour of assessee - I.T.A .No.-5660/Del/2012 - - - Dated:- 5-9-2014 - SHRI G. D. AGRAWAL, HON BLE VICE-PRESIDENT AND SHRI C. M. G .....

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..... f test of the human probabilities as laid down by the Hon'ble Apex Court. Reliance is placed on following case laws:- i) Sumati Dayal Vs. CIT 214 ITR 801 (SC) ii) Durga Prasad Morya Vs CIT 82 ITR 540 (1971) 3. That the appellant craves leave to add, modify and / or delete any ground(s) of appeal. . 4. In the facts and circumstances of the case, the order of the Commissioner of Income-tax(Appeals) may be set aside and that of the A.O restored. 2. Briefly stated the facts giving rise to this appeal are that the Assessing Officer (AO) noted that the assessee has withdrawn huge cash from bank account and the same amount has been deposited to the same account after lapse of substantial time. On query from the AO the assessee .....

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..... tended that the CIT(A) also ignored the fact that the Capital account of the assessee in the firm always remained in negative before impugned withdrawals as well as during and after such withdrawals and also the withdrawals made by the firm from overdraft was increasing heavy debit balance resulting into heavy interest liability on the firm which is not in accordance with behavior of a man of ordinary prudence rather the above conduct of the assessee was in contradiction of principles test of human probabilities. The D.R. also contended that the AO made addition on justified reasoning which was deleted by CIT(A) without and basis. Therefore, impugned order may be set aside by restoring that of the AO. 5. Replying to the above the Ld. ass .....

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..... ank a/c bearing no.0285130002853 at HDFC Bank, W.K. Road, Meerut. The cash flow statement submitted by the assessee has many lacunae. From the said cash flow statement, it is gathered that: 1. cash withdrawal of ₹ 3,00,000/- made on 08/04/2008 was deposited on 13/5/2008 and the explanation offered by the assessee is cash deposited out of cash . This explanation of the assessee is illogical as it is impossible to believe that such a huge amount of cash will be kept by the assessee for so long as to deposit the same amount in the bank after unnecessarily waiting for such a long duration. Similar explanation has been offered by the assessee for cash of ₹ 5,00,000/- withdrawn on 3/10/2008 and deposited on 4/3/09. 2. no reason .....

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..... hat the appellant withdrew cash from her SB A/c in the HDFC bank and also withdrew capital balance from her capital account her partnership firm. M/s. Shakti Traders, Meerut. A copy of bank account also has been placed on record. The cash flow statement shows that there are cash withdrawal of .Rs.19 lakh from HDFC bank on different dates and withdrawal of ₹ 13 lakh from her capital account in her partnership firm M/s. Shakti Traders on different dates. There is no negative cash balance at any point of time. It is not the case of the AO that the amounts withdrawn were utilized anywhere else. The AR has also placed on record the audit report of M/s. Shakti Traders along with the ledger account of the appellant. In view of material place .....

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