TMI Blog2018 (12) TMI 580X X X X Extracts X X X X X X X X Extracts X X X X ..... ON P BOAZ, ACCOUNTANT MEMBER For The Assessee : Shri. H. Guruswamy, ITP For The Revenue : Shri. Guruprasad B. L, Addl. CIT ORDER This appeal by the assessee is directed against the order of CIT(A)-3, Bangalore dated 20.06.2018 for Assessment Year 2015-16. Order on petition for condonation of delay in filing the appeal before the Tribunal 2.1 Admittedly, there is a delay of 24 days in filing the appeals for Assessment Year 2015-16 before the Tribunal. Along with the appeal, the assessee has filed an application of the aforesaid delay in filing the appeal along with an Affidavit sworn to by the assessee. In the application, the assessee has submitted that the delay of 24 days be condoned as she was prevented by reasonable and sufficient cause in filing this appeal in time due to medical treatment. The averments of the assessee are extracted hereunder: 1. The Petitioner/Appellant begs to submit that he has filed an Appeal against an Appellate Order dated 20-06-2018 passed by the Learned Commissioner of Income-tax(Appeals)-3, Bangalore with a delay of 24 days. 2. The Appellate Order was served on 25-06-2018 and as per the time limit provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amining petitions for condonation of delay in filing appeals has specified that substantial justice should prevail over technical considerations. It is settled position that while considering sufficient cause , courts should take a liberal view; especially where it is found that the parties have not acted with malafide intentions and the reasons/explanations put forth are satisfactory. In my view, the explanations / reasons put forward by the assessee for the delay of 24 days in filing this appeal indicates that her action is neither intentional nor deliberate. Keeping in mind the facts of the case on hand on this issue and the principles laid down by the Hon ble Apex Court in the case of MST Katiji others (supra); the decision of the Hon ble Karnataka High Court in the case of ISRO Satellite Centre in ITA No. 532/2008 dated 28.10.2011 and of the co-ordinate bench of the Tribunal in the case of Glen Williams in ITA No. 1078/Bang/2014 dated 07.08.2015, I condone the delay of 24 days in filing this appeal before the Tribunal. Consequently, this appeal is admitted for consideration and disposal. ORDER 3. Briefly stated, the facts of the case are as under: 3.1 The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o tax. 5. The Ld. CIT(A) has erred in confirming the Cash Deposited Ito the Bank without appreciating the fact that the Bank Deposits per-se do not represent the income. 6. The Ld. CIT(A) has erred in confirming the addition of ₹ 11,87,500/- without appreciating the fact that the appellant has filed the return of income u/s.44AD of the Act since no regular books of accounts were maintained and therefore the AO was not justified to hold that there was no retail saree business even though in column 10 of 1st Page of the Assessment Order the nature of Business was stated to be Saree Business. 7. The Appellant craves leave to add, alter, amend and delete any of the grounds at the time of hearing. The learned AR has filed submissions / details in paper book (pages 1 to 37) to buttress the assessee s claims. 5. Ground Nos. 1 and 7 being general in nature and not urged before us are dismissed as infructuous. 6. Ground Nos. 2 and 3 6.1 In the course of hearing of the appeal, the learned AR of the assessee submitted that the assessee is not pressing ground Nos. 2 and 3 raised in this appeal (supra). Therefore, ground Nos. 2 and 3 being not pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of ₹ 3,12,500/- declared in the return of income. It is the contention of the learned AR that the aforesaid cash deposits amounting to ₹ 15 lakhs are a part of the assessee s business turnover. Drawing the attention of the Bench to the copy and details of the assessee s Bank account in ICICI Bank placed at pages 13 to 17 of paper book, the learned AR pointed out that during the year under consideration, the assessee has withdrawn cash amount totaling ₹ 29,94,500/- and out of such cash withdrawals the aforesaid cash deposits amounting to ₹ 15,00,000/- were deposited/redeposited into the same Bank account which are less than the amount of cash available with the assessee; which facts were completely ignored and brushed aside by the authorities below. It is contended that in these factual circumstances, it cannot be construed that the cash deposits made by the assessee in its ICICI Bank constitute income from undisclosed sources. In support of the proposition that cash deposits do not necessarily constitute income of the assessee u/s 68 of the Act, the learned AR placed reliance, inter alia, on the decision of the co-ordinate bench of this Tribunal in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to ₹ 15 lakhs were made therein in the year under consideration and subsequently led to the additions to the assessee s income; was also perused by me. From a perusal thereof, I find that in the year under consideration, there have been cash withdrawals amounting to ₹ 29,94,500/- and cash credits therein have totally been ₹ 15 lakhs. As contended by the learned AR of the assessee, the cash credits are much less than the cash withdrawals in the relevant period and are apparently the source of the said cash deposits which have been deposited in the bank in accounts totaling ₹ 15 lakhs depending on the exigencies of business. In the light of the factual matrix of the case, as discussed above, I am of the considered opinion that cash deposits in the Bank account cannot be automatically construed to be income exigible to the tax from undisclosed sources or u/s 69A of the Act. The facts and circumstances on record, from an appraisal of the assessee s ICICI Bank account in the case on hand, indicate that the said cash deposits of ₹ 15 lakhs apparently are made out of cash withdrawals of ₹ 29,94,500/- during the year under consideration, and re-deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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