2014 (3) TMI 884

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....y the Assessing Officer as unexplained cash credit u/s.68 of the Income Tax Act (hereinafter referred to as 'the Act'), 1961. 3. The Assessing Officer (hereinafter referred to as 'AO') observed that there were cash deposits of Rs.13,31,232/- during the year in the bank account of the assessee. The assessee explained that cash loan of Rs.3,48,250/- were received from 31 parties and balance cash deposit was from the earlier cash withdrawn from bank account. Confirmations from all 31 parties were filed by assessee before the AO. The AO observed that there must be a reason for the assessee to withdraw and deposit cash frequently in his bank account even when there was sufficient cash in hand. The appellant withdrew amounts ranging from Rs.10....

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....ts, EMIs towards repayment of loans and to honour post dated cheques issued to lenders and creditors to avoid harassment and threats, the Assessee had to borrow small amounts of loans temporarily from time to time on several occasions to meet immediate shortfall of balance in the bank and hence in cash. The loans are less than Rs.20000/- each. The Assessee borrowed such small cash loans from relatives, neighbours, friends, colleagues and partners. Such small loans received in cash were repaid out of cash-in-hand whenever possible. The assessee also submitted the summary of the utilization of cash in hand towards cash repayment of loan amounts. The ld. CIT(A) after hearing the assessee and going through the records was satisfied with the ....

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....elated with either earlier withdrawal from the bank and/or loans received during the year. Therefore, he directed the AO to delete the addition of Rs.13,37,532/- made u/s 68 of the Act. Aggrieved from the order of the CIT(A), the Revenue is thus in appeal before us. On the other hand the ld. DR has relied upon the findings of the lower authorities. 5. We have considered the respective submissions of the parties and have also gone through the record. The assessee has given the detailed statement of withdrawals and deposits in his bank account. The assessee has explained that the said deposits were made out of the cash in hand from earlier withdrawals as well loans and advances etc. as mentioned above. Even the assessee has also explained ....