TMI Blog2020 (11) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/- has been explained by the assessee whereas the balance of ₹ 174,000/- remains unexplained. In view of the above analysis, we direct the ld AO to delete the addition of ₹ 340,000/- out of the addition of ₹ 514000/- sustained by the ld CIT (A) as the source to the above deposit is explained by the assessee out of the withdrawal of cash from the same bank account which was not found to have been utilized by the assessee for any other purposes. Merely some time lag between the withdrawal and deposit without any contrary evidence that such withdrawal has been used by assessee for some other purposes, cannot go against the assessee. Ld CIT (A) has used this proposition to confirm the above addition. Accordingly, we direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposit and that too by recording incorrect facts and findings and without observing the principles of natural justice. 4. That, the Ld. CIT(A) has erred in law as well as on facts in confirming the addition of ₹ 5,14,000/- by treating it as alleged unexplained cash deposits is bad in law and against the facts and circumstances of the case and without observing the principles of natural justice. 5. That, the Ld. CIT(A) has erred in law as well as on facts in appreciating that the deposit was made out of cash withdrawal from banks or any other means etc. 3. The brief facts of the case show that the assessee is an individual. On the basis of AIR information it was found that the assessee has made cash deposit of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls of deposits and its source was submitted. He referred to page No. 18 of the paper book wherein, the source of cash deposit has been explained. He submitted that merely because the cash has been deposited after his withdrawal after certain time gap but merely on that basis it cannot be held to be the income of the assessee. He also pressed on the issues of reopening of the assessment also. 6. ld DR relied upon the orders of the ld AO CIT(A). 7. We have carefully considered the rival contentions and find that there is no infirmity in action u/s 148 of the Act wherein, there was a requisite information and the ld AO has applied his mind and found that there is reason to believe for the reopening of the assessment as according to AIR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/-. Accordingly, ₹ 52,000/- deposited by the assessee on various dates in the month of October and November in small amounts cannot be taxed as the source of funds is available. Further in the month of January and February the assessee deposited ₹ 14,000/- and 15,000/- respectively for which the assessee explained withdrawal in cash of ₹ 41,000/- on 16.12.2010. Therefore, the above sum of ₹ 29,000/- has also been explained by the assessee. On 08.03.2011 the assessee has deposited ₹ 2 lakhs in cash wherein it was stated that same was available with the assessee in the form of withdrawal from the bank. However, withdrawal of cash from the bank to the extent of only ₹ 11,000/- out of withdrawal made of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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