2018 (12) TMI 1583

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.... assessee as unexplained cash deposits in the bank account u/s. 69 of the Income-Tax Act, 1961 ["the Act"] which was confirmed by the CIT(Appeals). 3. The assessee is an individual. His source of income is commission from acting as insurance agent. For the AY 2014-15, the assessee filed return of income declaring total income of Rs. 3,95,620. The case of the assessee was selected for scrutiny for the reason that as per AIR report obtained, there were cash deposits in SB Account. The assessee did not participate in the assessment proceedings and therefore assessment was completed by the AO to the best of his judgment. As per AIR report, the following were the cash deposits in the bank account:- Sl. No. Transaction amount Transact....

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....rder of CIT(Appeals), the assessee has preferred the present appeal before the Tribunal. 8. The ld. Counsel for the assessee reiterated the plea as was put forth before the CIT(A) and further relied on the decision of Hon'ble Karnataka High Court in the case of Smt P. Padmavathi v. ITO, ITA No.414 of 2009, order dated 6.10.2010. In the aforesaid decision, the source of return of loan was explained by the assessee as out of past withdrawals from the bank account. The explanation of assessee was rejected by the revenue authorities as well as by the Tribunal. On further appeal by assessee to the Hon'ble Karnataka High Court, on the question of law, viz., whether the finding of authorities that the source of cash deposits in the loan account....

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....ted that she was in possession of Rs. 7,00,000/- cash plus agricultural income on her hands, if after 40 days, a cash deposit is made to the extent of about Rs. 5,20,000/- towards loan account, it cannot be said that the source of the said deposit is not properly explained. Merely because there is a delay of 40 days from the date of withdrawal of the money from the bank account to the date of deposit in the loan account. Once money is shown to be in the account and withdrawn, what the assessee did with that money till it was actually deposited, is not the concern of the Department. As long as the source is explained and established and when the money is withdrawn from a savings bank account and paid to discharge loan by deposit into a lo....

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.... 151,500 - - 928,000 March 2012 140,400 155,000 - 1,223,400 Total 980,900 242,500 -     Month Cash Withdrawals Self cheque Cash Cash Deposits Closing Cash Balance April 2012 77,000 - - 1,300,400 May 2012 90,000 11,000 - 1,401,400 June 2012 103,000 - - 1,504,400 July 2012 61,000 - - 1,565,400 August 2012 38,000 53,300 - 1,656,700 September 2012 73,300 - - 1,730,000 October 2012 91,500 62,000 - 1,883,500 November 2012 41,500 73,000 - 1,998,000 December 2012 52,500 - - 2,050,500 January 2013 47,800 - - 2,098,300 February 2013 ....