TMI Blog2021 (9) TMI 627X X X X Extracts X X X X X X X X Extracts X X X X ..... sis of suspicion. We failed to understand the reasoning of the Assessing Officer that the amount was withdrawn to justify the cash deposits during demonetization period i.e. between 09.11.2016 to 30.12.2016. It is also seen that the cash was withdrawn much prior to such event. So far observation regarding sharp increase in payable expenses is concerned, there is no finding by the Assessing Officer that such expenses are bogus - addition has been made purely on the basis of suspicion. Such action of authorities below cannot be affirmed - Decided in favour of assessee. - ITA No.7606/Del/2019 - - - Dated:- 4-8-2021 - SHRI KUL BHARAT, JUDICIAL MEMBER Appellant by Sh.K.Sampath, Adv. Sh. V.Raj Kumar, Adv. Respondent by Sh.Gaur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nse thereto, the assessee had stated that he withdrew cash of ₹ 28,08,036/- during the year from the bank account. However, the explanation given by the assessee was not found acceptable to the Assessing Officer on the grounds that in the preceding years, cash on hand as on 31.03.2014 was ₹ 1,44,019/- and it was ₹ 44,367/- on 31.03.2015 however, it was ₹ 27,60,573/- on 31.03.2016. Therefore, the Assessing Officer proceeded to make addition of ₹ 26,66,380/- on the basis that the assessee had deliberately and with a view to deposit cash during demonetization period i.e. between 09.11.2016 to 30.12.2016 suppressed payments made in cash and did not disclose it in books of account during the Financial Year 2015-16. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven comparative analysis of cash deposited during the F.Y.s 2014-15, 2015-16, 2016-17 and during the demonetization period. The percentage of cash deposit vis-a-vis turnover has also been analysis from which it is seen that the percentage of cash deposit vis-a-vis the turn over as risen sharply from 0.55% in F.Y. 2014-15 to 28.05% in F.Y. 2015-16. Increased turn over has also been shown for F.Y. 2015-16 which has again dropped drastically in F.Y. 2016- 17. It is noteworthy that expenses payable of ₹ 23.32 lakhs were shown as on 31/03/2016 whereas the said amount only 9.40 lakhs as on 31/03/2015. It is also noted from the balance sheet that there is increase in TDS payable also from ₹ 12,647/- as on 31/03/2015to ₹ 1,93,151 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents. It is also not brought on record that the amounts so withdrawn from the bank account was utilized for any other undisclosed purposes. Further, it is noticed that Ld.CIT(A) observed that despite having sufficient cash in hand, the assessee withdraw the amount. It is correct that the assessee has withdrawn higher amounts than the immediate preceding years but that cannot be sole reason for making addition purely on the basis of suspicion. Further, I failed to understand the reasoning of the Assessing Officer that the amount was withdrawn to justify the cash deposits during demonetization period i.e. between 09.11.2016 to 30.12.2016. It is also seen that the cash was withdrawn much prior to such event. So far observation regarding sharp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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