TMI Blog2019 (3) TMI 1855X X X X Extracts X X X X X X X X Extracts X X X X ..... ng with the balance sheets, wherein source of income and cash has been disclosed and recorded. Hence in such a situation it is unfathomable as how provision of 69A can be invoked. The sole reason for disbelieving the assessee s explanation is that, firstly, no prudent person after withdrawing the cash will keep at home; and secondly, if there was an OD account having negative balance on which interest is being charged, then there was no need to keep such huge cash in hand at home. Such reasoning dehors any contrary material on record that the cash disclosed in the books of accounts has been invested somewhere else, then on mere surmise assessee s explanation cannot be discarded. If assessees have genuine sources of income which are re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Dated:- 29-3-2019 - SHRI AMIT SHUKLA, JUDICIAL MEMBER Assessee by : Shri Shashank Sharma, Adv. Shri Saurav Sood, Adv. Department by : Shri S.L. Anuragi, Sr. DR ORDER The aforesaid appeals have been filed by the above named assesses against separate impugned orders of even date, 4.6.2018 passed by Ld. CIT(Appeals) 11, New Delhi for the quantum of assessment passed u/s 143(3) for the assessment year 2015-16. Since issues involved in both the appeals are common arising out of identical set of facts, therefore, same are heard together and have been disposed of by way of this consolidated order. 2. In the case of Shri Nand Kumar Taneja, assessee has challenged addition of ₹ 24,72,000/- made u/s 69A; and in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dity in cash withdrawn from the bank. Further their entire income is received through banking channels and nothing is in cash. The assessee also filed statement of affairs for the last three years and cash flow chart. The details of computation of cash in hand in the case of Shri Nand Kumar Taneja were given as under:- F.Y Opening cash Cash withdrawal Cash deposited Cash expenditures Closing cash in hand Increase in cash in hand 2013-14 1023735 3251000 2995000 I365946 913789 -109946 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee, observed that, why anyone will keep so much cash with him/her; and as a senior citizen it would be prudent for them to keep money at bank rather than at home in form of cash which would be vulnerable to theft/burglary. He also noted the assessee had a credit card issued in their names and were also having Over Draft account which was having negative balance. Thus, he inferred that a prudent man would deposit cash in hand to save interest. He has noted that Shri Nand Kumar has made cash deposit of ₹ 42,50,000/- during the period of demonetization and Smt. Nita Taneja had deposited sum of ₹ 37,69,000/- in her bank account in the same period. Thus, he inferred that assessee has manipulated the cash-in-hand in order to justify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is unfathomable as how provision of 69A can be invoked. For instance, right from the financial year 2013-14 to 2015-16, the balance sheets of the respective assessees reflect huge cash-in-hand available with them, which is evident from the following details :- Cash in hand as on: 31.3.2014 31.3.2015 31.3.2016 Sh. Nand Kumar Taneja: R s. 9,13,789/- ₹ 33,85,789/- ₹ 62,31,326 Smt. Nita Taneja: ₹ 1,25,924/- ₹ 18,17,925/- ₹ 25,000/- 6. Apart from that, the details o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income deposited in the bank account and withdrawal, then in my opinion deeming provision of section 69A cannot be invoked. The reasoning given by the AO and Ld. CIT (A) is vague and based on surmise as to what a prudent person should have done. Once assessee has explained that being of senior citizen they have maintained such liquidity of cash out of their own disclosed income with them for certain contingencies, then without any material to controvert such an explanation, addition cannot be sustained. Assessees before the lower authorities have filed following documents to substantiate the cash in hand with them:- a. Income Tax Return with computation of total income. b. Balance Sheets for FY 2013-14, 2014-15 and FY 2015-16. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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