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TMI Blog2023 (9) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act, 1961 (hereinafter referred to as "the Act"), dated 24.12.2019. 2. The grounds of appeal raised by the assessee are as follows: "1. On the facts and in the circumstances of the case as well as law on the subject, the learned commissioner of the Income Tax (Appeals) has erred in confirming the addition of Rs. 5,07,000/- on account of cash deposits in the bank account during the demonetization period treated as alleged unexplained money u/s. 69A of the Act. 2. On the facts and in the circumstances of the case as well as law on the subject, the learned commissioner of the Income Tax (Appeals) has erred in initiating Penalty u/s. 271 A AC of the Income Tax Act, 1961. 3. It is therefore prayed that the above addition may please be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar, out of which cash currency of old 500 and 1000 were deposited in bank. To substantiate its claim the assessee filed cash flow statement also before the assessing officer. 6. Another show cause notice was subsequently issued by assessing officer on 17.12.2019, wherein the assessee was requested to submit details of cash deposit made during demonetization period with source thereof. In response to the said notice, the assessee filed a written submission and explained the cash deposited during the demonetization period, amounting to Rs. 5,07,000/-. The assessee stated that he has deposited cash of Rs. 5,07,000/- on 1.12.2016 and the source of the same was, cash from cash withdrawal from bank of Rs. 2,67,000/- and capital withdrawal from S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment made by the assessing officer. Accordingly, the addition made by the assessing officer is upheld and grounds are disallowed." 9. Aggrieved by the order of ld. CIT(A), the assessee is in further appeal before us. 10. Shri P. M. Jagasheth, the Learned Counsel for the assessee submitted that in response to notice under section 131 of the Act, the assessee has explained the source of cash deposit to the tune of Rs. Rs. 5,07,000/-, during the demonetization period. The assessee stated that he has deposited the cash, out of earlier savings of Rs. 1,89,500/- and cash withdrawal from the Bank of India of Rs. 3,17,500/-. However, during the assessment proceedings, the assessee has also explained that assessee was having sufficient opening ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ource of cash deposit during the demonetization period with help of concrete evidences. The assessee submitted before the Assessing Officer the cash book, cash flow statement, bank statement, and amount withdrawn from bank and amount withdrawn from partnership firm, in cash, which are not the sufficient evidences and documents, hence ld DR prays the Bench that addition made by the assessing officer may be sustained. 12. I have heard both the parties and carefully gone through the submissions put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the facts of the case including the findings of the ld. CIT(A) and other material brought on record. Before me, Ld. DR for the Revenue rei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osited for the period under consideration which is placed at paper book page nos.18 and 19. The assessee also submitted the return of income and ledger account of Shivam Polishing LLP wherein the assessee is a partner. 13. From the above facts, it is vivid that assessee has sufficient cash in hand, at the beginning of 01.04.2016, and the documents and evidences submitted by assessee, prove the cash in hand, as on 01.04.2016, which has not been rebutted and discredited by the Assessing Officer. The assessee has submitted plethora of documents to prove its claim of cash deposit, such as, the return of income and computation of income for assessment year (AY.) 2017-18, the detail of cash deposited during the year under consideration of Rs. 5, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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