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TMI Blog2023 (9) TMI 602X X X X Extracts X X X X X X X X Extracts X X X X ..... see has taken the following grounds of appeal:- "1. The Ld. CIT(A) has erred both in law and on facts of the case in confirming addition of Rs. 8,49,000/- on Cash Deposit made in bank account with Kotak Mahindra Bank in a/c no. 08130140024196 without considering sources of cash deposited in bank account and its related want of cogent evidence. It is contended that the appellant has received freight charges and made withdrawal from bank and the cash on hand has been deposited in to the bank account." 3. The brief facts in relation to this ground of appeal are that during the course of assessment, on perusal of the Individual Transaction Statement (ITS), the Assessing Officer observed that the assessee had deposited cash of Rs. 10,83,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e remand report has refereed to written submission filed by appellant in remand proceedings wherein also similar facts were stated. The AO has stated that such additional evidences should not be admitted only on the ground that various opportunities were provided in assessment proceedings but on merits have not given any comment that cash deposit addition is required to be sustained or not after considering appellant's explanation as well as evidences. The appellant has submitted copy of computation of income for return of income filed on 28/03/2014 and in such computation, only two banks were disclosed i.e ICICI bank and IDBI Bank. The appellant has not disclosed Kotak Mahindra Bank in the list of bank details in return of income. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As cash book and fund flow statement submitted by appellant, cash of Rs 5000 is deposited on 22/11/2011 and immediately cash of Rs 11,600 was withdrawn on 23/11/2011, Rs 3000 on 24/11/2011. The appellant was having cash balance of Rs 3,05,761 and still appellant withdrew cash of Rs 50,000 on 03/12/2011. The modus operendi of cash withdrawal from bank inspite of having sufficient cash balance is not explained by appellant. Even from cash book submitted by appellant, it is apparent that appellant was no need for having huge cash balance as there are no major cash expenditure hence continuously withdrawing cash and claiming that cash deposits are out of cash balance cannot be accepted. The cash withdrawn from bank account are used by appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rought on record any clinching evidence whatsoever to disbelieve or disprove the fact that assessee had sufficient cash available in cash book on the dates when the cash deposits in question were made. Further, it was submitted that the Department has not brought on record any concrete evidence to demonstrate that cash withdrawal was utilised for any other purpose or was invested elsewhere. Further, from the order passed by Ld. CIT(Appeals), it is evident that he has not doubted the fact that cash withdrawals had been made by the assessee. The only reason why the disallowance was confirmed was because Ld. CIT(Appeals) questioned the need for having huge cash balances to be kept with the assessee. Accordingly, it was submitted that in the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been brought on record to discard the explanation for source of cash deposits which have been given by the assessee. It is well-settled principle of law that unless the Department comes out with any specific evidence to the effect that cash withdrawn by the assessee earlier was not available with assessee for depositing in the bank account (i.e. by showing that the assessee had incurred some specific expenditure on investment in shares, properties or other assets etc.), no presumption can be drawn that such cash withdrawals were not re-deposited by the assessee in its bank account. In the case of Shailesh Rasiklal Mehta176 Taxman 270 (Gujarat), the High Court held that once Tribunal deleted addition holding that Assessing Officer havin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto bank should be given. Accordingly, looking into the facts of the instant case, wherein the assessee has given a detailed explanation that the source of cash deposits was out of cash withdrawals from the bank account and the cash in hand generated from the business of transportation, and nothing specific has been placed on record by the revenue authorities to controvert the assertion made by the assessee, then the source of such cash deposits can be said to be explained by the assessee. Further, it is a well-settled principle of law that once there are substantial cash withdrawals which have been made by the assessee from his bank account, then the source of cash deposits in the same bank account can be presumed to have been made from th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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