TMI Blog2022 (11) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... any valid reasons. In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose. - ITA No. 85/SRT/2022 - - - Dated:- 27-10-2022 - Shri Pawan Singh, Judicial Member For the Appellant : Shri Tinish R. Mody, AR For the Respondent : Shri Vinod Kumar, Sr. DR ORDER UNDER SECTION 254(1) OF INCOME-TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal under section 253 of Income-tax Act, filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi (in short NFAC )/CIT(A) , dated 20/09/2021 for the Assessment Year (AY) 2016-17, which in turn arises against assessment order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961 [hereinafter referred to as the Act ], dated 10/12/2018. The assessee has raised the following grounds: 1. On the facts and in the circumstances of the case, as well as law on the subject, the Learned Income Tax Officer, Ward-2 1(3)(6), erred in making addition of Rs.6,47,693/- treating it as unexplained cash credit u/s. 68 of the I.T. Act, 1961 without proper appreciating the fact of the case. 2. On the facts and in the circums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded by Assessing Officer on page no.4 of assessment order. 4. The reply of assessee was not accepted by Assessing Officer. The Assessing Officer recorded that most of the withdrawn from Dena Bank was made through ATM and deposits in ICICI Bank is after 2 to 3 days. In one or two cases, the gap between withdrawals and deposits are more than 20 to 30 days. The assessee is practicing doctor and offered income on presumptive basis. The explanation given by assessee for withdrawal from one bank and deposits in another bank is nothing but afterthought. In a common practice, the person withdraws amount from ATM to meet his household expenses or any other expenses and not for depositing the same other bank account. The household expenses of a middle class family in the City like Surat, can approximately be estimated at Rs. 30,000/- per month. Therefore, the assessee is required at least to spent Rs.3.60 lacs as household expensed for whole of the year. The assessee failed to furnish any details of such household expenses other than cash withdrawal. The bank account of ICICI Bank was not disclosed in the return of income, thus, the Assessing Officer treated the credited entries of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of Rs.2,28,000/- deposited in ICICI Bank, is treated as used from above cash balance then also the net closing cash in hand would still remain at Rs.2,58,079/-. The assessee was having excess cash in in till 31.03.2021, over and above Rs.2,28,000/- to cover up the said amount of Rs.2,28,000/- used and utilized for depositing in ICICI Bank account in AY.2016-17 for carrying out share transaction. To substantiate such contention, the assessee filed balance sheet for AY.2017-18 reflecting the closing cash on hand for all years. The assessee on the basis of such fact contended that the cash deposited of Rs.2,28,000/- in ICICI Bank account was required to be treated as explained and the addition made by the Assessing Officer required to be deleted. 6. On the other credits in ICICI Bank Rs.4,19,696/-, which pertains to the share transaction, the assessee explained that he entered into sale transaction from money deposits with ICICI Bank to the tune of Rs.2,28,000/-. The credit entries reflected amounting to Rs.4,19,696/- in ICICI Bank was pertaining to transactions in shares as evident from copy of passbook. The Assessing Officer totally ignored the debit entries of Rs.6,29,918/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he house hold expenses. The ld AR for the assessee further submits that cash deposit of Rs. 2.28 Lakhs was from withdrawal from Dena Bank and remaining of credit amounting to Rs.4,19,696/- in ICICI Bank was pertaining to transactions in shares as evident from copy of passbook. The Assessing Officer totally ignored the debit entries of Rs.6,29,918/- available in ICICI Bank Account, which pertains to purchase cost of shares, brokerage, service tax and other charges for carrying out the share transactions. All such submissions were made before the Assessing Officer. The ld AR for the assessee submits that the lower authorities have not considered the submissions of the assessee. The ld AR for the assessee submits that in fact the assessee has suffered losses in the share transaction, still the assessing officer made addition of entire credit in ICICI bank without appreciating the facts properly. The ld AR prayed to delete the entire addition, which is made without appreciating the facts. In alternative the ld AR for the assessee submits that matter may be restored to the file of assessing officer with the direction to examine the cash available with him on withdrawal from Dena Bank. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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