9911796707
TMI Blog2018 (2) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... Y) 2009-10. 2. The appeal raises a single issue, i.e., the sustainability in law, in the facts and circumstances of the case, of an addition in the sum of Rs. 4,66,610/- sustained by the ld. CIT(A) out of a total addition of Rs. 14,45,800/- effected by the Assessing Officer (AO) on account of unexplained cash deposits in the assessee's bank account with ICICI Bank (Hall Bazar, Amritsar). 3. The brief facts of the case are that the assessee during the course of assessment proceedings furnished the following cash flow statement: Amount (Rs.) Opening balance as on 31.03.2008 8,45,379 Add: Income earned during the year 2,56,000 Add: Cash withdrawals from saving a/c during the year 26,83,190 Add: Cash transfer f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,610 Aggrieved, the assessee is in second appeal. 4. We have heard the parties, and perused the material on record. Our first observation in the matter is that the assessee has not led any evidence even during the first appellate stage with regard to the paying guest house business, which was the prime reason for the Assessing Officer in not accepting the assessee's cash flow statement, filed in explanation, even as he does not disturb the assessee's income from, as stated, paying guest house business, returned on estimated basis, being sans any books of account. Two, the cash withdrawals from the bank, made on a regular basis, could form a valid basis for the cash deposits in the bank account where, for example, there is trading activit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation for the cash deposited in her bank account, and which would therefore require being verified by the AO. He would also fairly concede to an error in the cash flow statement for the year (refer para 3) in-as-much as it states the income for the year at Rs. 2.56 lacs, i.e., as against the correct figure of Rs. 1.56 lacs. This, again, endorses our earlier observation that there has been no verification of the CFS - which is the assessee's explanation for the cash deposited in her bank account, by either the assessing or the first appellate authority. The assessee before us sought to justify the opening cash-in-hand by furnishing a cash flow statement for the immediately preceding year (i.e., f.y. 2007-08), as under, drawn, as stated, on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reduce the closing balance of the cash-in-hand as on 31.03.2009, arrived at Rs. 3.78 lacs. 5. We, in view of the foregoing, accordingly, hold as under: (a) the AO shall vet the cash flow statement (summarized at PB page 10) for f.y. 2007-08 for the veracity of the various figures (with reference to the records, vizbank statement, assessed income), as well as its calculation. Needless to all, the CFS shall be for all the bank accounts of the assessee; (b) the opening cash balance as on 01.04.2007 shall, instead of an arbitrary figure of Rs. 1.60 lacs, be adopted at 1/3 of the business income for the immediately preceding year (AY 2007-08) as returned or, as the case may be, assessed. The household expenses for f.y. 2007-08, in line wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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