9911796707
TMI Blog2020 (2) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... essed u/s.143(1) of the Act. Subsequently, the case of the assessee was selected for scrutiny and statutory notices were issued to the assessee. The assessee during the relevant assessment year was sales Manager of ICICI Prudential Life Insurance Company Limited. The assessee submitted that the bank account of the assessee was used for the business purpose of the company and the cash was collected from the agents which was deposited into his bank account. Thereafter the premium of the policy holders/prospective policy holders was paid through his bank account. Thereafter the AO asked the assessee to substantiate the cash deposits in his bank account. During the course of assessment proceedings, the AO found that the assessee has deposited cash of Rs. 7,25,000/- in his bank account out of which Rs. 75,000/- was accepted by the AO and remaining Rs. 6,75,000/- was treated by the AO as unexplained deposit in his bank account. 3. Feeling aggrieved from the assessment order, the assessee appealed before the CIT(A) and the CIT(A) partly allowed the appeal of the assessee. 4. Against the order of the CIT(A), the assessee is in further appeal before the Income Tax Appellate Tribunal. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... home, no evidence can be adduced. The assessee had also filed the cash flow statement for the preceding assessment year i.e. Assessment Year 2009-10 to explain the cash in hand available for the year under consideration. Copy of the cash flow statement for the preceding year as filed with the assessing officer are enclosed at page no. 12 to 16. Being the son of a Head Constable in Punjab Police - Sh. Ravel Singh who had passed away in 1986, the assessee was staying with his widow mother and real brother in the police quarter. This fact stand mentioned at point no. 2 of the submission dated 30/11/2012 filed at page no. 8 & 9 above. The household contribution of the assessee was about Rs. 1.70 lakhs as the pension received by his mother was also available. Copy of the pension account as filed with the assessing officer is enclosed at page no. 17 to 19. The real brother of the assessee i.e. Sh. Sukhraj Singh was a head constable in Punjab Police and was running/maintaining the house. Withdrawals made by the assessee through ATM card cannot also be viewed against the assessee. A person may have cash available at home but if he needs money while he is out of home, he can withdraw throug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be false, it would be remote and farfetched conclusion to hold that the money belonged to the person with whom it was lying deposited. It has also been held by the Supreme Court in the case of CIT vs. Umacharan Shaw reported at 37 ITR 271 that suspicion however strong cannot take place of proof. When the assessee had given reply for specific withdrawals, there was no reason to disbelieve the same. It was not justified on the part of t he assessing officer to believe part of the statement and disbelieve part of the statement. The reduction of the amount received from Sh. Pishor Singh to Rs. 50,000 was thus not justified. Mother of the assessee - Smt. Harjinder Kaur had funds available with her which were given to her son. As submitted above, the assessee's father was in police and had expired and in his place, his elder son Sh. Sukhraj Singh was given job in Punjab Police. The level of funds in question are not unreasonable to expect from a normal person. In fact after demonetization, the prime minister had himself announced that a deposit of up to Rs. 250,000 in the bank account out of old saving would be considered as reasonable. The brother of the assessee - Sh. Sukhraj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not deal with the addition the nature of which has been made by the assessing officer. The above submissions as well as the rejoinder were before the ld. CIT(A) who has incorporated these at page no. 4 to 9 of the impugned order. The findings of the assessing officer are contained in para no. 4.8 to 4.11 at page no. 10 and 11 of the impugned order. It was observed by the ld. CIT(A) that as far as customers / agents cash was concerned, no customer would leave cash to this extent with the agent (cash flow statement of earlier year at page no. 15 & 16) whereas cash balance of Rs. 50,000 in self cash statement was accepted for which equivalent relief was allowed and the addition of Rs. 675,000 reduced to Rs. 6,25,000. The affidavit for the gift given by mother and real brother as being out of their savings has not been accepted for being "self serving in nature". It was further stated that the assessee should have supported this with evidence in the shape of assessment particulars, source of income, bank statements etc. ' With regard to the above, it is submitted that for gifts received from family members out of their savings, no further evidence could have been provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 45,500 in respect of which policy of customer was not produced and addition of Rs. 94,000 [48,500 + 45,500] was made. This contention of the assessing officer is not justified. The cash flow statement of own cash itself shows adequate cash being available with the assessee. The cash flow statement enclosed above at page no. 20 & 21 accounts for this balance amount of Rs. 48,500 [Rs. 194,000 - Rs. 145,500]. Out of the sum of Rs. 194,000 a sum of Rs. 100,000 pertained to the policy whose details were given and benefit for the same has been allowed. The balance amount of Rs. 45,500 was wrongly added as adequate cash is in any case available as per the cash flow statement filed at page no. 20 & 21. The addition of Rs. 94,000 [48,500 + 45,500] deserved to be deleted. The above submissions were before the ld. CIT(A) [point no.2 at page no.6&7 of paper book. Finding of CIT(A) is in para no.5.7 of the impugned order wherein position as per cash flow statement has not been considered. Without prejudice to the above submissions, even if the source of funds is not believed, adequate cash in hand was available as on the date of deposit and no addition was called for. The cash flow st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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. Considering the totality of the facts and circumstances of the case and the submissions of the assessee, we are of the opinion that the issue of cash deposits of Rs. 6,25,000/- as confirmed by the CIT(A) 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. As we have set aside this issue to the file of AO to consider the claim of the assessee, as per our above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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