TaxTMI 
TaxTMI 
2016 (4) TMI 695
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....Bank and made cash deposits amounting to Rs. 40,04,000/-. Therefore, issued a show cause notice and asked to explain the source and nature of credits into the bank account. In response to show cause notice, the assessee has filed a written submission and stated that he had source for cash deposits into the bank account. The assessee further submitted that he is assessed to income tax and the cash deposits were explained from his fast saving from his salary income and also savings from his wife's account. It was further stated that during the year under consideration, he has received cash gift of Rs. 8,21,798/- on the occasion of his son's marriage, which was also deposited in his bank account to keep fixed deposits in the name of his son and payment of insurance premium. In support of his claim filed necessary cash flow statements, affidavits and list of gifts received from friends and relatives, so as to explain the availability of sources for cash depoits. The A.O. however after considering the explanations furnished by the assessee rejected the assessee's explanations and made additions of Rs. 40,04,000/- u/s 69A of the Act. The A.O. further held that though assessee claim....
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.... the assessee has filed detailed cash flow statement along with relevant documentary evidences to prove the sources claimed in the cash flow. The CIT(A) ought to have accepted the explanations of the assessee, as each source of income has supporting evidences. The A.R. further submitted that the assessee has filed a detailed cash flow statement for the period from 1998-99 to 2008-09 and arrived at net savings of Rs. 7,88,875/-. It was further stated that the assessee has received a sum of Rs. 5,09,000/- from sale proceeds of Sarugudu Thota. The A.R. further submitted that the assessee's wife is a Post Graduate having regular source of income from tuitions and income from other sources has explained the sources to the extent of Rs. 10,46,675/-. To this effect, assessee has filed necessary cash flow statement along with affidavit from his wife affirming the earning of income by conducting tuition classes. The A.O. without assigning any reasons rejected the evidences filed by the assessee which is not correct. Similarly, during the year under consideration, the assessee has received cash gift on the occasion of his son's marriage which was used for cash deposits into bank account to m....
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....see claims to have sources from the above sources of income, failed to substantiate the claim with any cogent evidences. The A.O. was of the opinion that the assessee has failed to furnish evidences in support of his claim. Therefore, cash deposit to the tune of Rs. 40,04,000/- stands unexplained and hence, made additions u/s 69A of the Act. 6. The assessee filed a paper book containing copy of impugned bank account, cash flow statements, copy of affidavit from his wife and brothers and confirmation letters from donors who gifted on the occasion of his son's marriage. On perusal of the paper book filed by the assessee, we find that the assessee has deposited periodically substantial amount of cash into his bank account and were utilized to make various FDs and payment of insurance premium. Admittedly, the assessee did not disclose this bank account along with income tax return regularly filed with Department. However, the A.O., from the AIR information, found that the assessee held a bank account at Corporation Bank and also made cash deposit of Rs. 40,04,000/-. Though, assessee subsequently came up with an explanation that aforesaid cash deposit of Rs. 40,04,000/- was out of his ....
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....amounts were utilized for the purpose of cash deposits into bank account. The assessee claims to have received cash gift of Rs. 8,21,798/- on the occasion of his son's marriage and the same was used for cash deposits into bank account. The assessee further stated that he had deposited gift received into his bank account and made fixed deposit in the name of his son. Though assessee filed a list of donors along with 16 confirmation letters, that itself is not enough to prove that he had received cash gift of such a huge amount. Out of the total 300 gifts, only few are in kind and the remaining amount is received in cash, that too in uniform amount of Rs. 1,116/- or Rs. 5116/-. Therefore, it is unbelievable that he has received such a huge amount of cash gifts on the occasion of his son's marriage. 8. The Ld. A.R. of the assessee relied upon the decision of Hon'ble High Court of Gujarat in the case of Pipush Kumar O. Desai Vs. CIT (supra) and ITAT Delhi Bench decision in the case of Inderjit Singh Sabarwal Vs. ACIT (supra) and argued that when availability of cash was explained by the assessee with the help of cash flow statement, the A.O. was not justified in adding the cash deposi....