TMI Blog2021 (7) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... erated net cash receipts of ₹ 191,240/- from agricultural operations, net cash receipts (before depreciation) of ₹ 315,589/- from diary business during the year under consideration which reasonably explains the source of purchase of car for which part payment was made in cash of ₹ 369,850/-. As far as withdrawals for household expenses are concerned, we find that the same is again demonstrated partly from agricultural and diary activities during the year as well as availability of cash at the beginning of the financial year. We therefore find that the assessee has duly explained the source of payment for purchase of car and the investment so made in purchase of car cannot be treated as made out of undisclosed sources - Dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14.08.2017 at the same total income of ₹ 193,850/-. In the course of assessment proceedings, the ld. AO has noticed that as per page 10 of Exhibit No. 2, the assessee had made payment of ₹ 369,850/- in cash for purchase of a car on 13.02.2013. Though regular books of accounts have not been kept by the assessee but the assessee has explained the same with his cash flow statement as well as capital account and balance sheet which were made on estimated basis. However, the ld. AO rejected the same as there were no cash withdrawals in the bank statement of the assessee and accordingly, the amount was added as unexplained investment. On appeal the ld. CIT(A) summarily rejected the appeal of the assessee and against the same, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh the assessee has not maintained any books of accounts, however the assessee has duly submitted the profit and loss account, capital account and balance sheet on estimated basis to support the payment towards purchase of car and the same is appearing at PB 15. Even the assessee has duly submitted the cash flow statement explaining the source of investment in purchase of car at PB 16. 1.1.4 Copies of ITR, computation of total income, cash flow statement and financial statements submitted from AY 2010-11 to AY 2013-14: We are submitting herewith the financial statements and cash flow statements from AY 2010-11 to AY 2013-14 for your kind perusal from PB 13-25. These statements show the year to year availability of cash with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he balance is kept as savings in cash only. This contention of the assessee is proved by absence of deposit in the bank account In any case, the complete receipt shown by the assessee as appearing in the cash flow statement has duly been assessed by the ld. AO to tax and therefore, there is no justification in stating that there was no cash withdrawal by the assessee as the cash was duly available out of the receipts shown by the assessee 1.1.7 Drawings of assessee or income of assessee not doubted by the ld. AO: It is important to note that the assessee has duly submitted the complete figures of income as well as drawings with the financial statement submitted. No question was raised by the ld. AO on the drawings declared by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een taxed by the ld. AO. The Id. CIT(A) has also erred in sustaining the same without any justification. Hence, the appeal of the assessee is prayed to be allowed. Therefore, we pray your goodself to delete the complete addition of ₹ 369,850/-. 4. Per contra, the ld. CIT/DR has relied on the findings of the AO which are contained at para 7.1 to 7.4 of the assessment order which read as under:- 7.1 The reply filed by the AR of assessee has been duly considered and not found acceptable for the reasons that the assessee has himself admitted that no books of accounts are maintained by him. The income declared by assessee in his return of income is not supported with his contention as no cash was available with him. 7.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de payment of ₹ 3,96,850/- in cash. No cash withdrawals from bank except for F.Y. 2011-12 relevant to A.Y. 2012-13 are seen. The withdrawals from capital account were for the purpose for daily or his personal expenses. Since, cash balance for payment of ₹ 3,69,850/- is no where justified. Therefore, the investment in purchasing of car is treated as out of his undisclosed income and the same is hereby added in his total income for this year. 5. It was further submitted that ld CIT(A) has duly considered the submissions of the assessee and the findings of the AO have been confirmed. It was accordingly submitted that there is no infirmity in the findings of the ld CIT(A) and the same may be confirmed and appeal of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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