TaxTMI 
TaxTMI 
2018 (10) TMI 1490
X X X X Extracts X X X X
X X X X Extracts X X X X
....red in confirming addition of Rs. 11,49,000/- as Income from unexplained sources u/s.69A of the Act. 2 On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in upholding AO's action of reopening of assessment U/s.147 of the Act which is bad in law. Your appellant craves leave to add, alter, amend, delete or modify any of the above referred grounds of appeal." 2. Briefly stated, the assessee who is engaged in the business of trading of imitation jewellery, cutlery and footwear had filed his return of income for A.Y 2006-07 on 26.07.2006, declaring total income of Rs. 11,45,124/-. Subsequently, the case of the assessee was reopened under Sec.147 of the Act. 3. During the course of the assessment proceedings, the A.O called upon the assessee to explain alongwith supporting documentary evidence the source of cash deposits of Rs. 13,36,250/- in his bank account with DCB Bank, Branch: Dongri, Mumbai. The assessee in his reply submitted before the A.O that he had on various occasions deposited cash in his saving bank account in order to facilitate purchase of certain immovable property. On the basis of a summary of the bank statement placed on record during the c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t being persuaded to subscribe to the claim of the assessee that the source of the cash deposits of Rs. 13,36,250/- in his bank account was sourced out of the cash withdrawals preceding the same, added the same as the income of the assessee from unexplained sources. 4. Aggrieved, the assessee carried the matter in appeal before the CIT(A). The CIT(A) after perusing the explanation of the assessee as regards the source of the cash deposits of Rs. 13,36,250/-, observed that the assessee had tried to relate the cash deposits made in his bank account in the months of August and September, 2005 with the cash withdrawals made from the said bank account a year ago. The CIT(A) on a perusal of the bank statement of the assessee for the year under consideration observed, that a peak credit of Rs. 11,49,000/- stood reflected as on 02.08.2005. In the backdrop of his aforesaid observations the CIT(A) restricted the addition in the hands of the assessee to the extent of peak cash credit of Rs. 11,49,000/-. 5. The assessee being aggrieved with the order of the CIT(A) has carried the matter in appeal before us. The ld. Authorized Representative (for short 'A.R') took us through the facts of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arda (supra) & Baldevraj Charla (supra), the respective assesses were duly maintaining their books of account. It was further submitted that unlike the case of the present assessee, in the case of Jagdish N. Thakkar (supra) the assessee had furnished daily cash flow statement with the A.O. The ld. D.R further distinguishing the facts involved in the case of Shri Veerappa T. Shetty (supra) averred that in the said case proper explanation as regards the source of the cash deposits was furnished by the assessee. The ld. D.R in order to drive home his contention that where an assessee fails to explain the 'Nature' and 'Source' of the cash deposits, the same was liable to be added to his income, relied on the following judicial pronouncements: (i) Sudhir Kumar Sharma Vs. CIT-III, Ludhiana (2014) 224 Taxaman 178 (P & H) (ii) Pareshbhai Karshanbhai Sorathiya Vs. ITO, Ward 8(3), Surat (ITA No. 1290/Ahd/2013, dated 27.03.2017) (ITAT, Surat). On the basis of the aforesaid contentions, it was submitted by the ld. D.R that the appeal filed by the assessee being devoid of any merit was thus liable to be dismissed. 6. We have heard the authorized representatives for both the parties, perus....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aforesaid cash deposits of Rs. 74,000/- and Rs. 2,00,000/- on 04.08.2005 and 10.09.2005, respectively, therefore, there was no reason for characterising such cash deposits as having been made by the assessee from unexplained sources. We thus, in terms of our aforesaid observations delete the addition of Rs. 2,74,000/- [Rs.74,000/- (+) Rs. 2,00,000/-]. 8. We shall now advert to the remaining cash deposits of Rs. 10,62,250/- [i.e Rs. 13,36,250/- (-) Rs. 2,74,000/-] made in the bank account of the assessee from 12.09.2005 onwards, as extracted from the 'Chart' filed by the assessee with the A.O, as under: Date Withdrawals Deposits 12.09.2005 100000 13.09.2005 100000 15.09.2005 108250 19.09.2005 300000 22.09.2005 30000 23.09.2005 100000 26.09.2005 50000 28.09.2005 50000 03.10.2005 50000 05.10.2005 50000 07.10.2005 25000 13.10.2005 16000 15.10.2005 100000 18.10.2005 100000 22.10.2005 7000 130000 23.12.2005 4000 23.01.2006 4000 06.03.2006 50000 23.03.2006 10000 We may herein observe, that as the assesse....