TMI Blog2021 (7) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... s towards household withdrawals are taken at ₹ 108,000/- instead of ₹ 48,000/- for A.Y 2008-09 and ₹ 144,000/- instead of ₹ 66,770/- for A.Y 2009-10 and considering the same, the opening cash balance would come to ₹ 323,635/- instead of ₹ 423,740/- considered by the assessee. Taking the same into consideration, we find that total cash receipts comes to ₹ 34,03,035 and total deposits comes to ₹ 35,90,250/- reflecting a shortfall of ₹ 187,215/- which remain unexplained. Hence, the addition to the extent of ₹ 187,215/- are sustained and remaining addition is hereby directed to be deleted. Appeal of the assessee is partly allowed. - ITA No. 1069/JP/2018 - - - Dated:- 2-7-2021 - Sandeep Gosain, Member (J) And Vikram Singh Yadav, Member (A) For the Appellant : Mahendra Gargieya, Adv. For the Respondents : Monisha Choudhary, JCIT ORDER Per Vikram Singh Yadav, AM This is an appeal filed by the assessee against the order of ld. CIT(A)-1, Jodhpur dated 13.06.2018 wherein the assessee has taken the following grounds of appeal:- 1. The impugned additions and disallowances made in the order u/s. 143(3) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... less ₹ 6,64,900/-). After giving credit of the cash available from trading activities of ₹ 1,44,000/- and ₹ 35,000/- received from cash loans totaling to 1,79,500/-, the AO finally added the balance as shortfall of ₹ 12,09,750/- to the income of assessee as unexplained cash deposits in bank account. 3. In the first appeal, the ld. CIT(A) partly confirmed the impugned addition holding as under: 5.2 I have considered the assessment order, submissions of the appellant and the facts of the case. It is noted that the addition of ₹ 12,09,750/- constitutes three elements viz. gift by the father, opening balance discrepancy and the amounts deposited in the bank remaining unexplained satisfactorily. x x x x x x Now coming to the issue of Gift by his father, it is seen that the capacity, identity and creditworthiness of father and genuineness of transactions are no more in doubt thus, amount of gift of ₹ 5,00,000/- is treated genuine, hereby. Whereas, the issues of opening cash balance and credit entries in the bank account of the appellant are concerned, genuineness of both, has not been proved. Appellant has furnished self-serving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances claim of opening cash balance of ₹ 4.23 Lakh is not abnormal. The lower authorities are silent as to for what purpose the earlier withdrawals would have been spent by the assessee. 3. Availability of current year income of ₹ 3,86,110/- is fully established: 3.1 Further as regard the availability of cash during the relevant financial year 2009-10 (A.Y. 2010-11) the assessee submitted a cash flow statement for the entire year which has taken into account all the receipts viz. opening cash Balance of ₹ 4,23,740/-, gift of ₹ 5,00,000/- (accepted by the CIT(A) at Pg-9), Salary Income of ₹ 1,44,000/- and Income from retail business of ₹ 2,42,110/- (as assessed by the AO itself Pg-10), cash withdrawal from bank of ₹ 22,20,900/- and loan from relatives of ₹ 35,000/- (as accepted by the AO Pg-9). Thus, total cash receipts/available cash was of ₹ 35,65,750/- during the year. Out of the same, the assessee made total deposits of ₹ 34,30,650/-. After reducing drawings of ₹ 1,19,500/- the closing cash balance of ₹ 15,600/- was still lying with the assessee (i.e. no negative cash) on 31.03.2010. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Individuals and HUFs not having Income from Business or Profession . There is no any column in ITR Form-2 which requires to shows Cash Balance. Moreover, this Form does not require maintaining books of account and there is no column for balance Sheet P L Part. Therefore, the assessee on its own had prepared cash book and Cash Flow Statement, hence AO's allegation are baseless. 5. There apart, more importantly, a cash book prepared upto 15.08.2009 was also filed before the AO, who has discussed and accepted the same partly though not rejected fully. Needless to say that instead of making estimations a cash book prepared on day to day basis was more desirable as only such evidence could give precise answer i.e. show the availability of cash on the relevant dates of deposits. 5. Per contra, the ld. DR submitted that the assessee has submitted self-serving statement of accounts and particulars of entries without any substance to prove satisfactorily the authenticity of claim made by him and these statements remain unproved. Further, she relied on the order of the AO and our reference was drawn to the findings contained at Para 4 and 5 of the assessment order which rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been ₹ 32,000/- (383510/12), Here no expense is being assigned on monthly basis. No house hold withdrawals are being considered assuming that it were met out of his salary income shown. Thus up to mid Aug, 09 cash available out of trading for depositing in bank account would be ₹ 1,44,000/- (32000*4.5). Thus only cash ₹ 1,44,000/- is treated as available out of trading activities. Assessee has also shown cash loan of ₹ 35,000/-. Thus total cash available was ₹ 1,79,500/- for depositing in bank account. Total withdrawals were ₹ 6,64,900/- from Bank (BOR 468400 + SBI 196500) up to 10-08-2009. Cash Deposit in bank account were 2053650/- (BOR 915800/, + 1137850/-). Thus there is short fall of ₹ 13,88,750/-. Now as discussed above we treat ₹ 1,79,000/- also available on account of trading activity and cash loans. Thus shortfall would be ₹ 12,09,750/-. Assessee has no answer for the source of cash deposit to the extent of ₹ 12,09,750/-. Coincidently the difference in total cash deposited during the entire year and withdrawal is also 1209750/- (BOR 1077700 + SBI 2352950= 3430650/- - BOR 56400 -SBI 1656900=1209750). In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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