2014 (1) TMI 185

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s return of income for the assessment year 2009-2010 on 12.03.2010 admitting total income of Rs.2,49,500/-. The Assessing Officer completed the assessment under section 143(3) of the Act, by making the following additions : i) Short term capital gain u/s.111 Rs.32,947/- ii) Unexplained cash deposits Rs.53,82,884/- and determining the total income at Rs.56,32,380/-. 3. During the assessment proceedings, the Assessing Officer found that the assessee had made the following deposits in banks. 1. State Bank of Hyderabad, Hyderabad, Gunfoundry Branch, Secunderabad. S.No. Date Amount 1 30-12-2008 900000 2 30-12-2008 900000 3 30-12-2008 900000 4 30-12-2008 900000 5 30-12-2008 1000....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er, there are some receipts in cheque and some cash withdrawals as well as some cash deposits which are fairly close by in terms of dates. The CIT(A) further observed regarding other deposits of cash, the dates of withdrawals and deposits are many weeks part and credit cannot be given for more opening balance because it pertains to cash deposits and not cash withdrawals. The CIT(A) found that a credit of approximately Rs. 6 lakhs can be allowed to the assessee wherever the cash withdrawals are within one week of the cash deposits and he held that regarding other entries the assessee has not been able to conclusively explain the circulation of money and the CIT(A) confirmed the balance addition of Rs.10.82 lakhs and partly allowed the appeal....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....explain the huge deposit. The learned D.R. further submitted the written submissions which is as follows : "That the learned CIT(A) after duly considering the explanations given by the assessee, confirmed a portion of the addition on account of sec.69A made by the A.O. He has given a clear finding that he has considered the O.B. of Rs.10,24,736/- in the bank account of the assessee in Cosmos Co.op Bank. He has made a distinction about the proximity of deposit dates. For receipts / deposits in the bank which are close in terms of dates, he has accepted the plea of the assessee. He has also observed that for certain other deposits and withdrawals, they are many weeks apart, and it does not appear to corroborate the explanation of the asses....