TaxTMI 
TaxTMI 
2018 (12) TMI 206
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....ermission 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/- 21.06.2010 -do- 516337 Shri Himadri Awashi (Son) 6,00,000/- 21.06.2010 -do- 516332 Assessee 5,00,000/- 28.0....
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....ee 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with the assessee and Assessing Officer has also not brought out any material on record to show that cash which was withdrawn was spent on some other purpose and that cash deposited again was from undisclosed sources.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 undisclosed sources. The ld. CIT(A) after considering the assessment order, submissions of the assessee, facts and circumstances of the case, held as follows:- "5. I have....
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....ng 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 sources of income. The AO has also arbitrarily and without any basis concluded that the earlier withdrawals made from her bank account were utilized somewhere else, rather than deposited in her said bank acc....
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....en 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 has also filed copy of ITR for A.Y. 2009-10 and computation of income of A.Y 2009-10 in which she had disclosed income of Rs. 2,64,00,000/- and paid tax thereon. I find force in the argument of appellant that said ....