TaxTMI 
TaxTMI 
2004 (5) TMI 281
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....ne was not justified in confirming the addition of Rs. 6,73,000 under s. 68/69 of the Act though the sources of the investments were duly recorded in the books of accounts maintained. The addition be deleted. 3. The assessee denies his liability to pay interest under s. 234A, 234B and 234C of the Act and the same be deleted from the assessment. 4. The appellant craves to leave, add/amend or alter any of the above grounds of appeal. 3. Ground No. 1: The ground No. 1 relating to the addition of Rs. 25,000 made by the AO and sustained by the CIT(A) was not pressed by the learned Authorised Representative of the assessee. It is accordingly rejected as not pressed. 4. Ground No. 2: The facts in brief are that the assessee deals....
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....Amount (Rs.) 1-7-1999 21,000 28-7-1999 58,000 13-8-1999 87,000 4-9-1999 97,000 11-9-1999 89,500 27-9-1999 97,500 1-10-1999 65,000 18-10-1999 85,000 27-10-1999 75,000 Total 6,73,000 8. The explanation given by the assessee was rejected by the AO for the reasons given in para 13.1 of the assessment as under: (i) the cash credits are explained as out of 'Tijori account' but no such Tijori account was maintained by the assessee either in the past or in future; (ii) assessee's Tijori account is in the form of petty cash book whereas the Tijori account is maintained for safe custody of the major portion of the cash balance; (iii) the cash was withdrawn and deposited without a....
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....odical withdrawals of the various amounts and the purposes for which the said amounts were withdrawn ranging from Rs. 21,000 to Rs. 97,500. If these amounts were withdrawn from the cash book and debited to the so-called 'Tijori account' and not spent must have been available with the appellant much before he started redepositing such withdrawals in his books of account. This has not been done, but the redeposits were made periodically ranging from Rs. 3,000 to Rs. 85,000 over a period of one-and-half months, that too after the series of withdrawals were stopped. Such withdrawals and redeposit put a question mark on the genuineness of the transaction as well as the sources of the credits/deposits in the books of account. The amount withdrawn....
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....ble explanation. Under the circumstances, I hold that the AO was justified for the reasons mentioned in the assessment order in coming to the conclusion that the cash credited/deposited in the books of account of the appellant on various dates between 6th Nov., 1999 and 24th Dec., 1999 could not be considered to have been available from the periodical withdrawals made from July, 1999 to October, 1999. The onus cast under s. 68/69 of the IT Act, 1961, has not, therefore, been discharged by the appellant and accordingly, the addition of Rs. 6,73,000 is sustained and the ground of appeal raised by the appellant in this regard falls." 10. The inferences drawn by the AO and by the CIT(A) are impliedly based on two presumptions; one, that the ....