TMI Blog2020 (2) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... l brother as being out of their savings and the gifts received from family members out of their savings. Documents filed by the assessee are necessary for examination of the sources of deposits made in cash and forwarded to the AO for remand report, then it is the duty of the AO to examine the documents and give report properly. As per the ld. AR the affidavit for the gift given by mother and real brother as being out of their savings and the gifts received from family members out of their savings. Ld. AR of the assessee also tried to justify the cash deposit into his bank account as quoted supra by way of his written submission. Issue needs verification and examination on the part of the AO after considering the submissions of the assessee and the documents to be furnished by the assessee. Needless to say, the assessee shall be given reasonable opportunity of being heard. The assessee is also directed to cooperate with the AO for early disposal of the case and substantiate his claim properly. - Appeal of the assessee is allowed for statistical purposes. - ITA No.167/ASR/2017 - - - Dated:- 5-2-2020 - Shri L.P. Sahu, AM And Shri Ravish Sood, JM For the Assessee : S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the deposits in the bank account. The detailed submissions on the issue have not been appreciated. The facts of the case as also brought to the notice of the ld. CIT(A) are that the assessee during the year was a sales manager with ICICI Prudential Insurance Co. Ltd. The assessee had deposited ₹ 7,25,000 in cash in his bank accounts with ICICI Bank and HDFC Bank. The deposits in the bank account were explained in the reply dated 30/11/2012 through a cash flow statement wherein benefit of amounts withdrawn in the earlier year was also considered. The deposit of ₹ 300,000 was explained in point no. 1 and the deposit of ₹ 425,000 was explained at point no. 5. Copy of the covering reply is enclosed at page no. 8 9. Regarding the deposit of ₹ 425,000, a sum of ₹ 50,000 was accepted as loan from Sh. Pishor Singh and the balance amount of ₹ 375,000 was treated as unexplained and assessed to tax u/ s 69A of the Income Tax Act along with the figure of ₹ 3,00,000. Since funds were available with the assessee on the date of deposit out of the earlier withdrawals, benefit of the same had to be allowed in the absence of any material being pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 31/3/2009 is extended further up to the date of specific deposit which have been doubted by the assessing officer, adequate cash in hand would be available with the assessee. Cash flow of own funds is enclosed at' page no. 20 21. As per the cash flow statement, even after making deposits in bank, sufficient cash balance was available. Regarding the deposit of ₹ 4,25,000 it is submitted that for this deposit, the amount received from his Chachaji - Sh. Pishor Singh at ₹ 200,000 was also available besides the amount received from mother at ₹ 100,000 and the amount contributed from Sh. Sukhraj Singh at ₹ 100,000 [please see page no. 21]. Copy of the affidavit from real brother Sh. Sukhraj Singh and mother Smt. Harjinder Kaur stand enclosed at page no. 22 23. In fact Sh. Sukhraj Singh is also the co-owner of. the property whose payment was made through the account of the assessee. Copy of the registration deed of the property which clearly shows that the brother of the assessee Sh. Sukhraj Singh was equal co-owner is enclosed at page no.14 15. The funds thus given to his brother for deposit in bank account for making payment for joint proper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pported by his affidavit enclosed above. Being in police since the death of his father in the year 1986 it is not unreasonable to expect the person to have saved ₹ 100,000 particularly when he was to be the co-owner of the property for which the advance was being given. Even if the entire source of funds is not believed, adequate cash in hand was available as on the date of deposits and no addition was called for. The cash flow statement filed above may please be considered (please see page no. 20 21). It is further submitted that the assessing officer has given comments just for the purpose of making justifying the addition. We would like to draw your attention to the decision of the Delhi High Court in the case of CIT vs. Kulwant Rai at 291 ITR 36 wherein it was held that in the absence of any material that the cash was spent by the assessee, the Tribunal was justified in holding that the addition was not sustainable. The Rajasthan High Court has in the case of CIT vs. Nanalal Teli reported at 220 CTR 186 held that in the absence of any material that the said amount was spent, the investment could not be treated as out of unexplained sources. The Rajas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Kaur who was the wife of a police official who had passed away could definitely have a sum of ₹ 1 lakh as savings (affidavit at page no. 23). Similarly the brother of the assessee - Sh. Sukhraj Singh who was had joined Punjab Police since 192. and was a head constable (affidavit at page no. 22) could definitely have savings of ₹ 1 lakh. The opening cash balance as on 1/4/2009 (page no. 20) in the cash flow statement which was supported by the cash flow statements of the earlier year should not have been doubted unless it had been proved that the money available had been spent elsewhere. The ld. CIT(A) was thus not justified in sustaining the addition of ₹ 6,25,000 by allowing relief of ₹ 50,000 only as explained above. The withdrawals from ATM have been considered in the previous year as being available for subsequent cash deposit. This was done for simplification of calculation of cash in hand since household expenses were basically met by the brother of the assessee [3rd to 7th line at page no. 3 of the paper books] and some withdrawals were made by mother from pension account [please see page no. '18 19]. Even if some of the ATM withdrawals are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of deposit and no addition was called for. The cash flow statement referred to above at page no. 20 21 above may please be considered along with the explanation given for ground no. 1 and the addition of ₹ 94,000 deleted. 6. On the other hand, ld. DR relied on the orders of authorities below and vehemently submitted that the assessee could not substantiate his claim of cash deposit before the authorities below. Both the authorities have taken due consideration on the documents submitted by the assessee. Therefore, the ld.DR submitted that the appeal of the assessee deserves to be dismissed. 7. After considering the rival submissions of both the sides, perusing the entire material available on the record and orders of both the authorities below along with the case laws and paper book placed before us, we find that during the course of assessment proceedings, as the assessee could not substantiate the cash deposits into his bank account, the AO treated the same as unexplained deposits and added the same into the total income of the assessee. The CIT(A) observed that the affidavits filed by the assessee are self serving in nature and do not have any evidenti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
