TaxTMI 
TaxTMI 
2017 (6) TMI 175
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....i Jain, explained that the cash deposited in the account was earlier withdrawn in the current year and earlier year (Page-10 of the paper book), the details of which were filed before the Assessing Officer, for purchase of land. It was contended that since the deal could not materialize, therefore, the same was again deposited. The crux of the argument is that the source of cash was duly proved. Reliance was placed upon the decision in Mr. C. Vamsi Mohan Nandyal, ITA No.469/Hyd/2014, order dated 27/03/2015. Our attention was also invited the copy of the cash book summary (pages 10 to 30 of the paper book), copy of the capital account ledger of the assessee in the books of M/s Trance Ocean Agency (pages 31 to 39 of the paper book), copy of the cash book Summary in the case of Snehal Mehta along with the bank statement for the period 01/04/2005 to 31/03/2008 (pages 40 to 92 of the paper book), copy of the cash deposit details along with certificate from the bank (pages 93 to 96 of the paper book), copy of ITR acknowledgment for Assessment Year 2008-09, 2006-07 and 2003-04 (pages 97 to 100 of the paper book) along with various pages like pages 104 and 121 of the paper book, containing....
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.... discharged. It was also observed by the Assessing Officer that no prudent businessman would keep huge amount of cash unutilized. It is also observed that the assessee withdrew the cash for some other purpose, no disclosed to the Department and the same has been twisted to justify the cash deposit of Rs. 2,14,40,500/- (page-4 of the assessment order). Finally, the Ld. Assessing Officer observed as under:- "4.3 The assessee has failed to furnish the following: a) Balance sheet as on 31.03.2008, 31.03.2007, 31.03.2006. b) Capital account for the year ended 31.03.2008, 31.03.2007, 31.03.2006. c) Wealth tax records for such huge cash on hand. d) Even the list of properties given on rent was never submitted till the query was raised during the course of assessment. e) No statement of affairs for all the three years viz. for A. Y.2006-07, 2007 -08 & 2008-09 were any time filed till conclusion of assessment. f) Mere filing of bank: summary or letters neither justifies the source of cash deposit nor does it prove the genuineness of explanation claimed by the assessee. g) In the matter of cash credit the Supreme Court has held that on preponderance of probability, the additions can b....
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....se no disclosed to the Department. In such a situation, it can be said that factum of withdrawal of cash was not even disputed by the Revenue. The only point which has to be considered the purpose of withdrawal. Right from beginning i.e. assessment stage and till before this Tribunal, the assessee has been claiming that the amount was withdrawn for purchasing some land, which finally could not materialize and the same amount was redeposited. The Ld. Assessing Officer as well as the Ld. DR has relied upon the decision from Hon'ble Apex Court in Sumati Dayal 80 taxman 89 (SC), which speaks about human probabilities. We add here that the human probabilities applies to both sides. So far as, keeping the cash unutilized or keeping the same in the bank is purely the decision of an individual and the Department is not expected to guide. The businessman knows his interest and the compelling situations best. 2.4. Now, we shall analyze the claim of the assessee. During hearing, the Ld. counsel for the assessee invited our attention to various pages of the paper book. At page-40 of the paper book, there is a cash summary in the case of Snehal Mehta (PAN, AFBPM7557E), which is showing Rs.....
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....ness, the A.O. did not find the same to be acceptable in the absence of any supporting evidence. Accordingly, a sum of Rs. 21 lakhs was added by him to the total income of the assessee in the assessment completed under section 143(3) vide order dated 21.10.2011. 3. Against the order passed by the A.O. under section 143(3), an appeal was preferred by the assessee before the Ld. CIT(A) and the submission as made before the A.O. was reiterated on behalf of the assessee while explaining the cash deposit of Rs. 21 lakhs found to be made in his bank account on 24.12.2008. The Ld. CIT(A) however, did not find the same to be acceptable and confirmed the addition of Rs. 21 lakhs made by the A.O. for the following reasons given in paras 4.2 to 4.4 of his impugned order. "4.2. I have considered the facts on record and the submissions of the A.R. I have also examined the cash flow statement prepared by the appellant on the basis of the bank transactions. The explanation of the A.R. is based entirely on the claim that the deposits had been made out of the cash withdrawals earlier made from the same account. However, contrary to the A.R's claim, I do not find any proximity between the withd....
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.... for some other purpose. In our opinion, the said withdrawal having been made by the assessee just before a week i.e. on 17.12.2008, the same can reasonably be treated as available with the assessee for cash deposit of Rs. 21 lakhs made on 24.12.2008 especially when there is nothing to show that the amount of Rs. 13 lakhs withdrawn on 17.12.2008 was utilized by the assessee for some other purpose. We, therefore, treat the cash deposit of Rs. 21 lakhs made by the assessee in the bank account on 24.12.2008 as explained to the extent of Rs. 13 lakhs and sustain the addition made by the A.O. and confirmed by the Ld. CIT(A) on this issue to the extent of Rs. 8 lakhs. 5. In the result, appeal of the assessee is partly allowed." In the light of the foregoing discussion, we allow the appeal of the assessee. 3. So far as, the appeal of the Revenue (ITA No.8548/Mum/2011) is concerned, there is uncontroverted finding that the assessee furnished the cash summary and the assessee withdrew Rs. 1,85,82,000/- from the said bank up to the end of Financial Year relevant to Assessment Year 2008-09 and the amount of Rs. 10 lakh from M/s Trance Ocean Agencies, where the assessee is a partner. The ca....