2013 (9) TMI 1100

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.... information available with him the assessee deposited cash of Rs. 10,00,000/- in the Axis Bank account no. 55014. The assessee was, therefore, asked to furnish copies of bank statements alongwith explanation on each of the credit entries. The assessee furnished copies of various bank account alongwith cash book for the relevant period in support of cash deposited in the bank statement before the A.O. The bank accounts were jointly held with his wife, Mrs. Shilpa Choksi. The assessee's explanation for sources of cash deposit was that the cash was withdrawn from the bank and the same was re-deposited in due course. The assessee also had taken loan from M/s. Poonamchand Devchand Shroff , just to add cash balance in the alleged cash book. The ....

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....ade addition of Rs. 39,70,500/- as unexplained cash deposited in the bank account. 3. Being aggrieved by the order of the A.O., the assessee carried the matter before the CIT(A). The CIT(A) has restricted the amount of Rs. 39,70,500 to Rs. 7,95,160/- by observing as under: "4. I have considered the facts of the case, findings of the AO and written submission made by the appellant. The undisputed facts are that the appellant has withdrawn and deposited cash. It is also a fact that the appellant has withdrawn cash inspite of sufficient cash balance available with him. As far as cash book is concerned there is no negative cash balance observed. The appellant is also furnished explanation with regard to the requirement of cash in his l....

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....saction appear suspicious. The only explanation available for withdrawing cash in spite of cash balance is available is that i) the cash has been invested in unaccounted activities, income which is not offered. OR ii) there is really no cash balance available with the assessee as shown in the cash book. These arguments have not been demolished by the appellant therefore, question still remains unanswered. No reply to the above querries will lead to only one conclusion and that is the affairs of the appellant are opaque and suspicious. On the other hand, AO's action of making addition on accounts of all deposits made in the bank accounts of the appellant is without any justification and bordering to the point of high pitch asses....