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TMI Blog2020 (1) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the year for deposit in the capital account and thereby confirming the addition of Rs. 7,50,500/-." 2. Briefly stated, the facts of the case are that the assessee is engaged in trading of mustard oil, mustard cake, general grocery etc. During the year under consideration, she has introduce capital of Rs. 7,50,500/- in her business and the source of such capital introduction has been explained as withdrawals made by the assessee from her capital account of the previous financial year. However, the AO did not accept the submission of the assessee for the reason that the withdrawals made during the preceding financial year were deposited in the current financial year have no weight because in his view, the withdrawals may have been utili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial year amounting to Rs. 7 lac and same was available at the beginning of the financial year and which was reintroduced in the capital account during the year under consideration, copy of capital account of previous financial year and an affidavit of the assessee was also submitted. It was accordingly submitted that the addition so made by the AO may be directed to be deleted. Further, in support of the proposition that merely because there is time gap between withdrawals and deposits, no addition can be made in absence of any cogent material in possession of the Assessing officer, the ld AR has placed reliance on the following decisions:- * ACIT vs Baldevraj Charla and Ors. (2009) 121 TTJ 366 (Delhi) * S.R. Venkatta Ratnam vs. Cit (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing officer has raised an apprehension that withdrawals might have been utilized for some other purposes and it cannot be retained by the assessee in anticipation of proposed capital introduction during the year under consideration. In her support, the assessee has submitted that being an old lady, she had kept the amount so withdrawn with her for emergency requirement, the same was not utilized elsewhere, was available with her at the beginning of the financial year and was used for reintroduction of capital and has also submitted an affidavit in support of her contentions. We therefore find that the finding of the authorities below is in the realm of suspicion and conjectures as the source of capital introduction has been reasonably e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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