TMI Blog2023 (2) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no justifiable basis in not considering the cash flow statement for the previous financial year 2007-08 where cash flow statement for the current financial year has been considered by the CIT(A). As submitted by the AR, the withdrawals and deposits are supported by the assessee's bank account statements which are available on record. Therefore, we set-aside the matter to the file of the AO for the limited purposes of examining the cash flow statement for the previous financial year 2007-08 and the related explanation of the assessee in order to determine cash-in-hand at the beginning of the current financial year. AO is also directed to consider and take into consideration the cash-in-hand so determined at the beginning of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposits in the assessee's bank account. 4. Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A) and sought permission to file additional evidence under Rule 46A which was thereafter sent to the AO seeking his comments and on receipt of the Remand Report and the comments submitted by the assessee, the Ld. CIT(A) has given part relief and has sustained the addition amounting to Rs. 31,38,050/- and against it, the assessee is in appeal before this Tribunal. 5. In this regard, our reference was drawn to the findings of the Ld. CIT(A) which read as under: I have carefully perused the submissions of the Ld. AR the findings and the counter comments of the Ld. AO and contextualized these to the facts of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the cash flow statement for FY 2008-09 and there are only two entries claimed to be linked with the business of the appellant as under: 12.10.2008 Receipt from sale of books and Misc debtors 7,50,000 10.02.2008 Payment of Misc Creditors Purchases Expenses 6,00,000 In the absence of books of account, if these entries were to be treated as mere cash inflow and outflow; the peak unaccounted balance in the cash flow for the year 2008-09 comes to Rs. 31,38,050/- (not accepting the appellant's submission regarding the cash in hand). The Ld. AO is directed to restrict the addition to Rs. 31,38,050/-. Thus ordered. The appellant partly succeeds on this ground of appeal. 6. It was submitted by the Ld. AR that on a perusa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntenance of books of account, the same cannot be sustained given the fact that the assessee was not under any obligation to maintain books of account. Further regarding the opening cash in hand, it was submitted that in absence of books of account, the Cash Flow Statement should be taken into consideration and through the Cash Flow Statement, the assessee has demonstrated the availability of cash in hand and in absence of any adverse finding recorded by the lower authority, the same should be admitted and necessary relief be provided to the assessee. 7. Per contra, the Ld. DR has relied on the order of the lower authorities. 8. We have heard the rival contentions and perused the material available on record. The assessee has filed his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count statements which are available on record. Therefore, we set-aside the matter to the file of the AO for the limited purposes of examining the cash flow statement for the previous financial year 2007-08 and the related explanation of the assessee in order to determine cash-in-hand at the beginning of the current financial year. The AO is also directed to consider and take into consideration the cash-in-hand so determined at the beginning of the year to re-determine the peak cash balance during the year, which has been currently determined and stood at Rs. 31,38,050/-, and peak cash balance so finally determined be brought to tax. 9. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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