TMI Blog2023 (1) TMI 520X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be oblivious to the fact that the assessee had also incurred certain expenses in cash. From the perusal of the cash book of the assessee for the year under consideration,we find that as on 01/11/2016, the assessee had an opening balance of Rs.5,25,114. It cannot be disputed that the demonetisation was declared on 08/11/2016, and therefore the cash available with the assessee till that day can only be in old currency notes. As on 01/12/2016, the assessee had an opening balance of Rs.6,09,661. It is pertinent to note that after 08/11/2016, the old currency notes were not legal tender and thus any cash which was withdrawn by the assessee after that date can only be in the new currency or the valid currency. Therefore, the cash with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Centre, Delhi [ learned CIT(A) ], for the assessment year 2017 18. 2. In this appeal, the assessee has raised the following grounds: On the facts and in law, 1. The Hon. CIT(A) erred in confirming the addition of Rs.6,00,000/-, made u/s 69A r.w.s. 115BBE of the IT Act 1961, as unexplained money on account of cash deposited in the bank account with Kotak Mahindra Bank, Mumbai when the source of such cash deposit was from opening cash in hand and withdrawals from bank accounts of the appellant, all of which stood well explained with supporting evidences and therefore the addition as unexplained money was not justified and bears to be deleted. 2. The appellant craves leave to add, alter, amend and/or vary the grounds of appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/ Cash on hand as per Return filed on 05.08.2016 Rs.4,96,031/ Rs.6,36,031/ 5. The Assessing Officer did not agree with the submissions of the assessee and vide order dated 25/12/2019, passed under section 143(3) of the Act made the addition of Rs.6 lakh under section 69A of the Act. The relevant findings of the Assessing Officer are as under: 5. The details and submission of the assessee was perused but found not satisfactory or the following reasons: a) The assessee has not provided the source and documentary evidence in respect of actual opening cash in hand as on 31.03.2016 at Rs.4,96,031/-. b) The Income offered b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee and, inter-alia, held that from the details submitted by the assessee it is seen that as per the cash book the cash in hand as on 01/11/2016 is Rs.5,25,114, which does not tally with the cash deposited by the assessee on 01/12/2016. The learned CIT(A) further held that the assessee has not been able to prove the nature and source of cash deposited during the demonetization period. Being aggrieved, the assessee is in appeal before us. 7. During the hearing, the learned Authorised Representative ( learned AR ) submitted that the cash of Rs.6 lakh was deposited out of Rs.1 lakh withdrawn on 18/10/2016, from the Kotak Mahindra Bank, Rs.40,000, withdrawn on various dates from the HDFC Bank and Rs.4,96,031, opening cash in hand f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as also disclosed by the assessee while filing its return of income in Part A BS(6). As per the assessee, its return for the preceding assessment year has been accepted by the Revenue. It is pertinent to note that there is no material available on record contrary to the aforesaid submission of the assessee. Further, the submission of the assessee that Rs.1 lakh was withdrawn in cash by the assessee from its bank account maintained with Kotak Mahindra Bank on 18/10/2016 and Rs. 40,000, has been withdrawn in cash on various dates from its bank account maintained with HDFC Bank is duly corroborated from the copy of bank statements of Kotak Mahindra Bank and HDFC Bank, forming part of the paper book from pages 9 20. 10. From the copy of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... new currency or the valid currency. Therefore, the cash withdrawn after 08/11/2016, cannot be said to have been in old currency notes which were available for deposit with the assessee on 01/12/2016. Hence, cash in hand till 08/11/2016, can only be in old currency notes which can be considered to have been deposited by the assessee on 01/12/2016. As noted above, as per the cash book, the opening balance as on 01/11/2016 was only Rs.5,25,114. Since the assessee had deposited Rs.6 lakh in cash in 600 old currency notes of Rs. 1,000, denomination on 01/12/2016, therefore, we are of the considered view that the source of deposit of only Rs.5,25,114, in old currency notes can be said to have been satisfactorily explained by the assessee. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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