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TMI Blog2025 (5) TMI 124X X X X Extracts X X X X X X X X Extracts X X X X ..... drawals made earlier from ICICI and other bank account. 2) Under the facts and circumstances of the case and in law the learned CIT(A), NFAC has erred in confirming the addition of Rs. 40,00,000/- made by AO u/s. 69A of the act by treating the cash deposits in Axis Bank Account as unexplained money of the appellant by merely observing that there is huge time gap between the date of the cash withdrawn (17.12.2015) and the actual deposit of the cash (16.11.2016) and without bringing anything on record to show that the cash which was withdrawn by the assessee was already utilized for any other purpose. 3) The appellant craves the permission to add, amend, modify, alter, revise, substitute, delete any or all grounds of appeal, if deemed necessary at the time of hearing of the appeal." 3. On perusal of the grounds, the sole issue for our consideration is that whether the ld.CIT(A) erred in confirming the addition of Rs. 40.00 lakh made by the Assessing Officer (AO) for unexplained cash deposit u/s. 69A of the Act. 4. Facts in brief are that the assessee is an individual and Non-resident Indian and is working in Al Khoudh Steel Furniture Company LLC. Income of Rs. 3,26,560/- declar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y" for examining the issue of "Large Value Cash deposits during demonetization period as compared to return income". Thereafter, various statutory notices were issued to the appellant. In response to said notices, the appellant has submitted his written submission along relevant details/documents before the AO. Further, notice u/s 133(6) of the Act was issued to the bank authority to provide the details like bank account statement, details of SBN deposited during demonetization period. The bank authority has provided the requisite details/documents during the assessment proceedings. Accordingly, the AO passed an assessment order u/s 143(3) of the Act of Rs. 40,00,000/- assessing the cash deposited in SBN during the demonetization period as unexplained money u/s 69A of the Act. 4.1.1 In this regard, the appellant contended that the AO is not justified in making the addition u/s 69A of the Act as unexplained money of Rs. 40,00,000/-. The appellant explained that he was neither engaged in any business/profession nor maintained books of accounts during the year under consideration. He also declared the information of cash deposit in his ITR of A.Y. 2017-18. Accordingly, the AO had no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarified the fact and details of availability of cash and contended that he informed Axis bank, Jalgaon Branch vide letter dated 16.01.2017 regarding the source of the cash deposit. In that letter the appellant stated that the amount had been withdrawn from ICICI Bank a/c no. 003501078238 on 17.12.2015 for the purpose of education of his son and marriage of his daughter but due to some matrimonial difficulties marriage could not be fixed and the amount kept in reserved for any time requirement. In support of his contention, the appellant relied upon several case laws during the appellate proceedings and submitted the copy of ICICI Bank Statement, Axis Bank Statement, copy of explanation provided to Branch Manager of Axis Bank, chart regarding the 5 years bank deposit and withdrawals in cash. In this case, it is also a fact that the appellant had withdrawn at Rs. 35,00,000/- from ICICI Bank A/c no. 003501078238 on 17.12.2015. The appellant further explained in the written submission that the amount of Rs. 40,00,000/- was kept for marriage of daughter but on the other hand stated that it was withdrawn for emergency funds for the education of children, maintenance of house and admis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ok us through the paper book containing 17 pages and stated that the assessee is regularly receiving the funds in his bank account from his income earned at Muscat. He stated that the assessee has withdrawn Rs. 35.00 lakh on 17.12.2015 and these funds were remained unutilized till the declaration of demonetization scheme and the same along with other accumulated funds for past many years have been deposited in the bank. He submitted that withdrawal of funds is duly supported by the bank statement and there has been no further application of money during the period from date of withdrawal till the announcement of demonetization scheme and there is no legal bar to keep cash in hand for a long time. He stated that he used to stay abroad and the family always needs liquid cash for any unforeseen circumstances. He thus prayed for deletion of the impugned addition. 8. On the other hand, ld. Departmental Representative vehemently argued supporting the orders of the lower authorities. 9. We have heard the rival contentions and perused the record placed before us. Addition of unexplained cash deposit of Rs. 40.00 lakh u/s. 69A r.w.s.115BBE of the Act is in challenge before us. Ld.CIT(A) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred for the education of his children. Certainly the assessee might have incurred some expenditure for education of his children at NT, Mumbai and for BDS at Nashik. It is also an accepted fact that marriage of the assessee's daughter did not take place during this period. It is also observed that there are no cash withdrawals during the period from December 2015 till October 2016. We further fail to find any merit in the observation of the ld. AO that for such a long period from December 2015 till November 2016 assessee would not have kept the cash in hand at home because some liquid funds are required by family for meeting certain unforeseen circumstances and in the instant case the assessee being an NRI keeping cash in hand becomes more important for the family. 11. Taking all the above facts and circumstances of the case and also considering that assessee had not demonstrated about the source of alleged drawings and expenditure incurred for education of his children and also observing that as against the withdrawal of Rs. 35.00 lakh but the cash deposit of Rs. 40.00 lakh. So there is a clear cut difference of Rs. 5.00 lakh. Further, assessee has purchased a property durin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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