2018 (12) TMI 206

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....tated above as and when need of doing so arises with the prior permission of the Hon'ble Bench. 2. The only grievance of the Revenue is with regard to the deletion of addition of Rs. 1,35,61,000/- by ld. CIT(A) which was added by the Assessing Officer as unexplained cash deposits in the hands of the assessee. 3. The facts in this case are that assessee is earning interest and remuneration as partner in the firm, M/s Arun Construction. Details of income from various sources, copies of bank statements, details of investments, etc. were furnished during assessment proceedings. After examination of bank statements filed during the course of assessment proceedings, it was gathered by the Assessing Officer that during previous year assessee deposited cash in the following bank accounts as per details mentioned against each, totaling to Rs. 1,35,61,000/-:- Bank S/B Account No. Account Holder Cash deposited Date Union Bank of India 516301 Assessee 2,11,000/- 04.05.2010 -.do- 516332 Assessee 8,00,000/- 24.05.2010 -do- 516333 Shri Himadri Awashi (Son) 7,00,000/- 24.05.2010 -do- 516332 Assessee 6,00,000/- 21.....

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....k entries, which clearly indicates that on each date of deposits the assessee was having more than sufficient liquid money justifying the source of deposits. Assessee also submitted that details of deposits/withdrawals and copies of bank statements along with cash flow statement for financial year 2010-11 relevant to assessment year 2011-12 have been filed and even acknowledgement of tax return for assessment year 2009-10 was also filed. It was the contention of the assessee before the ld. CIT(A), by placing reliance on these documentary evidences, that nowhere Revenue has doubted availability of cash with the assessee and Assessing Officer has also not brought out any material on record to show that cash which was withdrawn was spent on some other purpose and that cash deposited again was from undisclosed sources. The Assessing Officer has only doubted behavioral pattern of the assessee but has accepted availability of own funds in the hands of the assessee. When source of cash deposit is explained and it is evident that it is the own cash of the assessee, which has been deposited in bank account, then there is no question of making addition under the head as income from undisc....

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....urces of money. 5.1 The appellant has filed detailed written submissions during assessment proceedings before AO and in appellate proceedings also. The appellant has also filed supporting papers/ documents, copy of bank account, statement of availability of cash in hand during the A.Y. under consideration to prove the genuineness and correctness of the deposits made in her bank account on different dates. The appellant has also submitted that on each occasion at the time of deposits in her bank account she had sufficient availability of cash with her during the A.Y. under consideration. These availability of cash represented from the earlier withdrawals made from her bank accounts. These entire transactions of withdrawals and deposits are duly reflected in her said bank account and the entire transaction are verifiable from the relevant records. These records were duly produced before AO during assessment proceedings, but the AO did not appreciate the facts of appellant's case and wrongly concluded that the deposits made in her bank accounts to the extent of Rs. 1,35,61,000/- represented her undisclosed investment made out of her unexplained/ unrecorded source....

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....mply clear that the addition of Rs. 1,35,61,000/- made by AO treating the deposits made in - the bank account of appellant and her minor son cannot be said proper and justified. The appellant has furnished the written submission alongwith supporting evidences to prove the deposits in these bank accounts during the assessment proceedings as well as appellate proceedings. I found much force in the argument of appellant that the AO could not treated the genuine deposits in the bank account of appellant and her minor son of Rs. 1,35,61,000/- as unexplained deposits made out of undisclosed source of income, specifically when the entire deposits on different dates were made out of earlier deposits on each occasion. The AO himself admitted the fact that each deposits in the bank account of appellant are backed by availability of cash in hand with the appellant, which represented earlier withdrawals of her bank accounts. I have also found much force of appellant that the doubt and suspicion on any transaction of appellant by AO cannot be a valid basis to treat the genuine transaction as nongenuine i.e. withdrawals and deposits in the bank account of appellant in present case. The appellant....

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....wal/deposits have been furnished before the Department. Nowhere Assessing Officer has come out with the finding that withdrawal of cash by the assessee was utilized to procure any asset or has been invested elsewhere and that cash deposit in the account was from other sources. Assessing Officer has simply doubted behavioral patter accepting the fact that assessee was having her own cash which has been frequently deposited and withdrawn from her bank account. At threshold, submissions of the ld. A.R. of the assessee, therefore, was that the order of ld. CIT(A) may be upheld and relief granted may be sustained. 8. We have perused the case record and heard the rival contentions. We find that addition has been made by the Assessing Officer, as is evident from his order, on the ground that he has come to the conclusion that cash deposits were from some other source of income which is not disclosed to the Revenue. Assessing Officer nowhere in his order has brought out any material on record to show that assessee is having any additional source of income other than that disclosed in the return nor Assessing Officer could spell out in his order that cash deposits made by the assessee wa....