TaxTMI 
TaxTMI 
2015 (7) TMI 943
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.... the assessee to some persons. During the course of assessment proceedings, assessee furnished details of the person to whom it had lent money. Assessee, it seems also stated that no books of account were maintained. From the bank account in the name of the assessee with Indiranagar Branch of Corporation Bank, Assessing Officer noted that there was cash deposits of Rs. 3,00,000/- on 23-11-2009 and Rs. 9,00,000/- on 12-01-2005. He sought explanation for the source from the assessee. Assessee vide his letter dated 20-12-2007 stated as under; " With reference to the above, I would like to inform that I have deposited Rs. 3,00,000/- on 23-11-2004 and Rs. 9,00,000/- on 12-01-2005 respectively. I have submitted bank statement and remarks and cas....
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....ressed with the above. According to him, i) The confirmations filed by the assessee did not have complete particulars and signatures therein were from illiterate persons. ii) Assessee had made petty withdrawals from his bank account, even when it had substantial cash with it, which was illogical. iii) The flow of withdrawals from bank were such that idle funds remained with the assesee, which no prudent business person would have done. Especially so, since assessee was in moneylending business. He thus, confirmed the addition. 6. Now before us the learned AR , referring to PB pages 2 to 5 submitted that the cash book prepared and produced by the assessee at the behest of the AO, clearly showed that there was sufficient cash balance with....
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....tani Vs CIT 223 ITR 544. 7. Per contra, the learned DR supported the orders of the authorities below. 8. We have perused the orders and heard the rival contentions. What we find is that, assessee had indeed produced a cash book before the AO. In fact various confirmation obtained by the assessee from its debtors, reflecting repayment in cash by them placed at PB pages 22 to 36 are nothing but the ledger pages of these debtors in assessee's books. May be its true that cash book was prepared at the behest of the AO. However, it remains a fact that the cash book was before the AO at the time of assessment proceedings. Copy of this cash book has been placed before us at PB pages 2 to 5 and bank book at page 6 to 10. Hence, assesssee's stateme....