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TMI Blog2022 (9) TMI 103X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 69A of the Act. The Id AO failed to appreciate that the cash was deposited in the bank account of a separate entity and did not belong to the assessee. Further, the transfer of Rs.25,00,000/- from the firm to the assessee was a separate transaction and had no link to the deposit of cash. 3. The appellant prays that the above additions made may be deleted." 3. The issue arising in ground No. 1, raised in assessee‟s appeal, is pertaining to addition of Rs. 22,00,000, on account of cash deposited in bank account of the assessee. 4. The brief facts of the case pertaining to this issue, as emanating from the record, are: The assessee is an individual and had filed his return of income on 31/03/2018, declaring total income of Rs. 54,81,110. During the year, assessee has declared income under the heads - income from profits and gains from business of profession, income from capital gain and income from other sources. During the course of assessment proceedings, it was observed that the assessee has made cash deposits of Rs. 20 lakhs in his HDFC bank account between 09/11/2016 to 30/12/2016 (i.e. during the demonetisation period). The assessee was asked to produce source of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oney." 5. Accordingly, the AO treated the cash deposit during the demonetisation period as unexplained money and added the same to the total income of the assessee under section 69A of the Act. In appeal before the learned CIT(A), the assessee reiterated the submissions made during the course of assessment proceedings. The learned CIT(A), vide impugned order dated 29/07/2021, dismissed the appeal filed by the assessee on this issue, by observing as under: "7.2.2. Vide Ground no. 2, the assessee has challenged the addition of Rs 20,00,000/- in respect of deposit made in HDFC Bank account. The contention of the assessee is that the amount which was deposited in the HDFC Bank was out of cash withdrawal from the same bank account during the period 28.07.2016 to 04.11.2016 totaling amount of Rs. 21,00,000/-. The claim of the assessee is that the cash withdrawn was lying with him and was not used anywhere else. I have given due consideration to the submission of the assessee. However, there cannot be any two opinion about the fact that no one withdraws cash from his bank account to keep it lying at his home to be deposited again in the same bank account. There has to be a reason for w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions and perused the material available on record. In the present case, the Revenue has treated the cash deposited by the assessee during the demonetisation period in its bank account as an unexplained money and added the same to the total income of the assessee under section 69A of the Act. It is the plea of the assessee that the cash which was withdrawn by the assessee from the bank was deposited in the very same bank account. Before the learned CIT(A), assessee provided the following details of cash withdrawal from the HDFC bank account; Date of Cash Withdrawal Amount (Rs.) Name of Branch 28.07.2016 2,50,000/- Matunga (West) 30.08.2016 10,00,000/- Matunga (West) 12.09.2016 3,00,000/- Matunga (West) 23.09.2016 1,50,000/- Matunga (West) 24.10.2016 1,50,000/- Matunga (West) 28.10.2016 1,50,000/- Matunga (West) Total 20,00,000/- 9. From the perusal of the statement of bank account maintained with HDFC Bank, Martunga (West) branch, Mumbai, forming part of the paper book, the above details are fully substantiated. We also find that apart from the aforesaid cash withdrawals, the assessee also withdrew amount of Rs. 2,25,000 on 04/0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited in the same financial year, even if the bank from where cash was withdrawn and bank where the cash was deposited are different. Thus, after considering entire facts and circumstances of the case, we direct the AO to give set off of entire amount of cash withdrawn from the Axis Bank and PMC Bank." 10. Further, in another decision, in Sudhirbhai Pravinkant Thaker vs ITO, [2017] 88 Taxmann.com 382 (Ahemdabad-Trib.), the coordinate bench of the Tribunal held that when the assessee has demonstrated that he had withdrawn cash from the bank and there is no findings by the authorities below that this cash available with the assessee was invested or utilised for any other purpose, in that even, it is not open to the authority to make the addition on the basis that the assessee has failed to explain the source of deposits. As regards the decision of Hon‟ble Punjab and Haryana High Court in Smt. Kavita Chandra vs CIT: [2017] 81 Taxmann.com 317 (Punjab & Haryana) relied upon by the learned DR is concerned, we find that the same is factually distinguishable. As in that case, the amount of cash deposit was much more than the withdrawal by the taxpayer from its bank account. 11. Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsferred to the assessee. The AO has noted that the cash deposited in the account of the firm was belonging to the assessee which was routed back to him immediately after deposit. The AO has further noted that M/s. Nivara Builders and Developers has no income or significant business activity shown in its ITR to justify such a large cash transaction. The assessee has also failed to furnish any documentary evidence which can prove that why such huge amount is credited in his bank account from the firm immediately after the deposit of cash in the firms account during demonetization. It is not in dispute that the assessee was partner in the said firm M/s. Nivara Builders and Developers. The assessee claimed that he has retired, but he did not mention the date of retirement i.e. whether he had retired from the firm before the cash was deposited in the firms account. In any case, it is an undisputed fact that the assessee has a close association with the firm. On perusal of the firm's account it is found that cash amounting to Rs. 25,00,000/- was deposited in The Bharat Co-op. Bank (Mumbai) Ltd. in the account of the firm on 11.11.2016 and the amount was transferred to the assessee o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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