2014 (11) TMI 1133

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.... 3. The CIT appeal failed to appreciate the explanation filed by the assessee for the source of cash deposits in the bank account." 2. The brief facts of the case are that the Assessee submitted his return at an income of Rs. 3,39,080/- on 31.3.2010 which includes a sum of Rs. 1,15,000/- being income from other sources and interest income of Rs. 2,24,077/-. The assessment was completed at an income of Rs. 59,02,207/- by adding Rs. 25,00,000/- as unexplained investment u/s 69 and Rs. 30,63,127/- as unexplained money u/s 69A. The AO noted that the Assessee has deposited a sum of Rs. 25 lacs with M/s. Shree Genji Electricals on which he earned interest amounting to Rs. 2,24,077/-. The deposit was admitted by the Assessee in his statement rec....

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....h deposit, therefore, were to the extent of Rs. 20,14,340/- and balance sum of Rs. 12,30,577/- was through account payee cheques. The Assessee explained the source of the cash deposit as under : Withdrawals during the F.Y 2006-07 Rs. 4,73,063 Salary earnings of F.Y 2006-07 Rs. 84,000 Salary earnings for F.Y 2007-08 Rs. 1,20,000 Withdrawals from Union Bank of India (Rs. 85,797 on 2.4.2008 and Rs. 50,000 on 29.3.2008) Rs. 1,35,000 Interest received from M/s. Genji Electricals Rs. 50,000 Total Rs. 8,62,063 For the balance sum, no source was explained by the Assessee. We noted that there are cash withdrawals to the extent of Rs. 1,35,000/- on 2.4.2008 and 29.3.2008. Therefore, to that extent we allow relief to the Assessee. The bal....