TMI Blog2022 (8) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... n appellant could not filed submissions due to technical glitches in the new income tax website. 2. That without prejudice to the ground No. (1) above on the facts and in the circumstances of the case the Ld. CIT(A) is wrong, unjust and has erred in law in upholding the finding recorded by the Assessing Officer that source of cash deposit of Rs. 1250000 made by the appellant is his bank account during demonetization period on 10.11.2016 remained unexplained and thereby confirming addition of said amount of Rs. 1250000 to the income of the appellant u/s 69A of the I.T. Act, 1961. 3. That the appellant craves the permission to add to or amend to any of the above grounds of appeal or to withdraw any of them. 3. Brief facts of the case are that assessee is a non-resident living in Thailand. The only source of income of assessee in India is notional income from House Property at Mumbai and interest income from his NRO/NRE Bank A/c. The assessee maintains accounts on computer for his affairs in India and prepares yearly Balance Sheet etc.The assessee filed his return of income for A.Y. 2017-18 computing total income of Rs. 88,407/- and therefrom claimed deduction u/s 80C o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the case the Ld. CIT (A) is wrong, unjust and has erred in law in passing impugned order on ex-parte basis. The notice(s) issued by Ld. CIT(A) were served on e-filling portal and no physical notice was issued to assessee. As evident and also verifiable from the material on assessment record that the assessee is Non-resident permanently living in Thailand. The appellant has no information whatsoever that when appealwas fixed. It is a known fact to everyone that March, 2020 to Aug. 2021 was Covid-19 period and the maximum period was under lockdown. Even the operation of international flights were also suspended and they were not allowed to fly. Because of thisassessee did not know about any notice for hearing of appeal and so could not appear/filed written submission before CIT (A). It is further submitted that before the last date of hearing i.e. 13-08-2021 the appellant tried to upload the written submission on Income Tax portal. But due technical glitches in the New Tax Portal could not able to file written submission. Thus, assessee because of above said reason(s)did not know about notice(s) for hearing of appeal. In view of the above facts and circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tization for Rs. 500/- Rs. 1000/- Bank notes and so assessee redeposited balance cash held by him in said specified Bank Notes in his said Bank A/c. The assessee in support filed details of such withdrawal in cash from Bank A/c with Bank statements and detail of month wise marriage expenses in cash and by cheques with evidence and month wise cash book showed balance cash in hand for A.Y. 2016-17. The Ld. A.O. rejected the said explanation and documents filed giving following reasons: - a) details of op. cash balance shown as on 01-04-2016 in details of cash withdrawn/cash expenses for the year 1-4-2016 to 31-3-2017 has not been filed. b) specific reason and rationale is not clear in respect of the fact that when assessee was already in possession of substantial cash amount why an amount of Rs. 2,00,000/- was again withdrawn on 19-05-2016. c) no evidence filed of occurring marriage of son in Jan. 2017 and also no supporting documents related to marriage exp. in cash shown in cash book. The proofs for the payments for marriage expenses do not mention any details of the assessee. Somewhere it is mentioned marriage expenses and somewhere it is mentioned engagement cere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rriage expenses do not mention details of assessee The assessee filed details of marriage expenses incurred in cash (Rs. 10,05,595) and by cheques (Rs. 64,01,012) and filed a few bills/vouchers which A.O. examined. However, the issue is not of marriage expenses but that of deposit in his Bank A/c on 10-11-2016 out of cash balance with assessee after cash expenses incurred on marriage function out of cash withdrawals made by assessee from his Bank A/c(s). The engagement ceremony occurs prior to marriage ceremony which are ceremonies of marriage and so expenses on any of them referred as marriage expenses. (d) No withdrawal from Bank A/c of assessee was made by Keshav which is verifiable from Bank A/c. The withdrawals were made by Anurag and Nitish from Bank A/c of assessee was for and on behalf of assessee on self cheques. The said persons are regular employees of the concern of his brother at Jaipur who were assisting assessee for that. The Ld. A.O. made no enquiry from assessee about this otherwise it could have been explained. We submit herewith the affidavits of above said persons in support of contention made. It was initially thought to solemnize all marriage functi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enough, rather it requires effective prosecution also. 7. It is observed that the appellant was filing the return of income showing only a meagre income. The huge cash deposit of Rs. 12,50,000/- was made in one go on 10.11.2016 following the announcement of demonetization of high denomination currency notes on 08.11.2016. The appellant did not submit any proof in support of claim of opening cash in hand of Rs. 4,66,688/-. Further; no plausible explanation has been given as to why cash was withdrawn when substantial cash was already available in hand. It is seen that as per the bank statement, the cash was delivered to three different persons namely Mr. Nitish, Mr. Anurag and Mr. Sunil. However, the appellant has not submitted any evidence at assessment stage or appeal as to how and when cash was received back from them. Further, the explanation that cash was withdrawn for marriage purpose is found to be incorrect as subsequently when the marriage happened in January 2017; all related payments were made by cheques and not in cash. In view of the overall circumstances, the explanation tendered by the appellant remains unproven and is not plausible. Therefore, there is no reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h, it was held that the assessee started under a cloud and must dispel that cloud to the reasonable satisfaction of the assessing authorities, and that if he did not, then, the department was free to reject his explanation and to hold that the amount represented income from some undisclosed source. 12. Further, in cases relating to the issue of source of demonetized currency, Hon'ble High Courts of Patna and Calcutta in Chunilal Rastogi vs. CIT [1955] 28 ITR 341 (Pat), Anil Kumar Singh vs. CIT [1972] 84 ITR 307 (Cal.) and M. L. Tewary vs. CIT [1955] 27 ITR 630(PAT.), have respectively held that where the assessee could not satisfactorily prove source and nature of amount which he encased on demonetization, revenue authorities were perfectly justified in drawing an inference that said sum was of an income nature. 13. Hon ble ITAt Delhi has in Leela Devi vs. ITO (ITAT Delhi) [ITA No. 1423/Del/1420 has upheld addition of unexplained cash deposit in the bank account in AY 2017-18 i.e. during the demonetization period. 14. In view of the overall discussion made above, it is concluded that the appellant has failed to explain the source of cash deposited in the bank ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- in the bank account of the assessee during the demonetization period on 10.11.2016 was out of withdrawals made earlier in the year to meet marriage expenses of the son of the assessee which was to be held on 07.01.2017 . Further, the ld. AR for the assessee submitted that the assessee is an NRI and for marriage ceremony preparation several expenses such as cash gifts envelopes for relatives etc. purchase of several goods from local market of daily consumption, for decoration/flowers etc. for these expenses the assessee has incurred in cash and kept cash ready with him and with his family members to incur expenses as and when required. Further the Assessing Officer has erred in findings that the opening cash balance in hand of Rs. 4,66,688/- as on 01.04.2016 has not been submitted by the assessee, we are of the opinion that the assessee s opening cash balance so given to the family members and other persons associated for the preparation of marriage ceremony for possible in future expenses was genuine . From the averments of the ld. AR for the assessee we observed that he has made further withdrawal cash from his bank accounts on 19.05.2016 and the ld. AR for the assessee submit ..... 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