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2017 (5) TMI 837 - ITAT DELHI

2017 (5) TMI 837 - ITAT DELHI - TMI - Addition on account of cash deposit in the bank account - unexplained sources - Held that:- Whatever contention was raised by assessee that cash belong to Smt. Saraswati Devi who in turn gave Smt. Vidya Devi and then given to the assessee have not been proved through any evidence or material on record. No independent witness has been produced to substantiate the fact that cash was actually given by Smt. Saraswati Devi. - How a huge cash is kept by Smt. .....

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ate from village Sarpanch will not prove the source of cash deposited in the bank account of the assessee. It therefore stands proved on record that assessee did not produce any evidence of source of cash deposits in his bank account. - Decided against assessee. - ITA No.1202/Del/2016 - Dated:- 16-5-2017 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER For The Assessee : Ms. Sakshi Rani, CA For The Department : Ms. Bedobani, Sr.DR Per BHAVNESH SAINI, Judicial Member ORDER This appeal by assessee has been .....

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of Hearing 03//05/2017 Date of pronouncement 16 /05/2017 source of this cash deposit along with the evidence to support his claim. The assessee stated that the amount was taken from his mother but could not produce any evidence in this regard and stated that same will be submitted shortly. Further the assessee filed a ikrarnama and certificate from village Sarpanch that his mother is legal heir of his maternal grandmother (mother s mother), however, the assessee could not furnish any evidence to .....

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the same which is reproduced on the impugned order in which the AO reiterated the facts stated in the assessment order and also submitted that assessee replied that the cash was arranged from his mother through gift and her mother got this cash from her own mother. It was also stated that cash was withdrawn from the bank account of maternal grandmother of the assessee (late Smt. Saraswati Devi). The assessee furnished copy of ikrarnama only and not source of the cash deposit was furnished. The .....

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Devi mother of the assessee. Only copy of the ikrarnama is filed which also speaks compensation equivalent to one acre is to be given to Smt. Vidya Devi mother of the assessee. No other details have been mentioned. The assessee at the remand proceedings explained cash in hand of ₹ 30, 70,000/- on 1.4.2010 and out of it cash has been deposited in his bank account after a gap ranging 3-10 months of withdrawal from the bank account of his grandmother Smt. Saraswati Devi. No explanation of whe .....

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the additional evidence i.e. copy of the bank account of Smt. Saraswati Devi under Rule 46A of the I.T. Rules. Ld. CIT(A) gave benefit of withdrawal and re deposit in his findings, however confirmed the addition to the extent of ₹ 22,16,500/-. His findings in paras 3.6 to 3.9 are reproduced as under :- 3.6 On merits of the contention, I have given careful consideration to the arguments of the appellant. The Assessing Officer has noticed that the appellant has deposited cash amounting to &# .....

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ovember 2010 (Rs. 8.5 lakhs). The explanation of the appellant is that his grandmother (motehr s mother )originaly belong to Rajasthan but was staying with the appellant as she had no legal heir. After the death of grandfather, she inherited some landed property which was due to receive certain compensation from Rajasthan Government. The grandmother had executed an ikararnama 09.11.2009 In the favour of the mother of appellant (Vidya Devi) consenting to either give amount of compensation equival .....

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re living with him. The appellant further contended that out of the aforesaid cash amounts periodically some cash was given to him by her maternal grandmother as he was taking care of her. It was this cash which has been deposited in the bank account. 3.7. It is a matter of record that cash withdrawals have been made from the account of grandmother but the Assessing Officer has challenged the contention stating that receipt of compensation of maternal grandmother has remained unverified. There i .....

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tually given by the maternal grandmother to the appellant.. The gap of deposit of cash and particularly such large cash has also not been explained by the appellant even during the appeal proceedings. It is seen that the maternal grandmother withdrew cash on 18.08.2009 (Rs. 25,00,000/- and 09.10.2009 (Rs. 42,00,000/-) which makes a total of ₹ 67,00,000/-. The first large outflow to appellant if believed has happened only in October 2010 which is almost after one year and as admitted the Gr .....

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the contention that there has been cash withdrawal and redeposit in the corporation bank of the appellant and the benefit of the same need to be given to the appellant needs consideration. For this purpose, the activity of cash deposit and withdrawal in the corporation bank account of the appellant is posted in a table as under :- Date Amount Deposited Date Self withdrawal 16.04.2010 61,500 16.04.2010 5,000 07.06.2010 26,500 03.06.2010 50,000 16.11.2010 5,00,000 07.10.2010 8,00,000 20.11.2010 1 .....

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n. 3.9 In consideration of the matter above, after giving the benefit of ₹ 3,50,000/- out of the total cash deposit of ₹ 25,66,500/-, the balance amount of ₹ 22,16,500/- remains as unexplained cash deposit in the bank account. The ground of appeal to that extent is dismissed and addition to the extent of ₹ 22,16,500/- is sustained. 5. It may be noted earlier the appeal of assessee was dismissed for default. However the miscellaneous application of assessee was allowed and .....

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ce of the cash deposit in his bank account. Therefore appeal of the assessee may be dismissed. 7. I have considered rival submissions and do not find any justification to interfere with the orders of the authorities below. It is not in dispute that there are cash deposits amounting to ₹ 25,66,000/- in the bank account of the assessee on various dates i.e throughout the year. The assessee explained that he has taken this amount from his mother for deposit but no evidence of source of cash w .....

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contention because the receipt of compensation by Smt. Saraswati Devi remained unverified. Further there is no gift deed executed by Smt. Saraswati Devi in favour of Smt. Vidya Devi. There is a huge gap between the withdrawals from the bank account of Smt. Saraswati Devi and deposit in the bank account of the assessee. Whatever contention was raised by assessee that cash belong to Smt. Saraswati Devi who in turn gave Smt. Vidya Devi and then given to the assessee have not been proved through any .....

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