AI Drafter 
TaxTMI 
TaxTMI 
2019 (1) TMI 587
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....er (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2012-13. 2. As per its grounds of appeal, the assessee is aggrieved by the action of the Revenue in making additions of Rs. 10,18,300/- as unexplained cash deposits which amount represents aggregate cash deposit in the bank account. 3. Briefly stated, the assessee filed its return of income declaring total income of Rs. 55,09,110/- which predominately included from salaries of Rs. 52,37,231/- earned in UK which is not taxable in India as the status of the assessee is a non-resident Indian (NRI). The return filed by the assessee was subjected to scrutiny assessment. In the course of scrutiny assessment, the AO inter alia observed certain cash deposits in the ba....
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.... by the assessee clearly stipulates that withdrawal is in the form of 'cheque paid' and not cash withdrawal as claimed. The AO accordingly found inherent consistencies in the reply of the assessee and found the explanation for the source of cash deposits to be unsatisfactory. Accordingly, addition of Rs. 10,18,300/- was made in the hands of the assessee towards such unexplained cash deposits. 5. Aggrieved, the assessee preferred appeal before the CIT(A). The CIT(A) re-visited the facts before it and was also of the same view that the explanation offered by the assessee in support of cash deposits were not satisfactory. Consequently, appeal of the assessee was dismissed. 6. Further aggrieved, the assessee preferred the appeal bef....
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.... not operate against the assessee per se in the interest of justice. The learned AR accordingly pleaded that the addition towards cash deposit stands corroborated in the light of the explanation and the additional evidence adduced and consequently, the additions made towards cash deposits be deleted. The learned AR thereafter relied upon certain decisions to augment its case. 8. The learned DR, on the other hand, relied upon the order of the AO and submitted that the bank statement showing cash deposit on various dates shows a peculiar and uniform pattern of cash deposits below Rs. 50,000/- on all occasions except at one instance. It was thus argued that such pattern shows that the assessee has deliberately used the peculiar way to avoid....
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....,500/- out of old savings from 2001 to 2009, there is no cogent material to support the plea. The assessee has also not explained the reasons for holding such large cash in hand particularly when the assessee has already gone abroad (UK) for job purpose on 21.11.2009. Thus, we hardly find any semblance of bonafide in the plea of the assessee on the source of such cash deposits. The typical pattern of deposits below Rs. 50,000/- in multiple tranches only accentuates the lack of bonafides. Nevertheless, possibility of holding some cash at any point of time cannot be entirely ruled out. In the absence of any evidence, we resort to estimations for probable holding of cash by a person of ordinary prudence and assign the same to be Rs. 1 Lakh. Th....
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....idence on record at this juncture attempted to be introduced without following the prescribed procedure. The deposits of Rs. 7,60,800/- thus remains unexplained. While holding so, we take notice of the decision of the Hon'ble Gujarat High Court in the case of CIT vs. Sarvankumar Sharma (2014) 49 taxmann.com 101 (Guj) where the additions on account of cash deposits were sustained where the explanation was found to be unsubstantiated. It is ostensible that the determination of issue in question is dependent entirely on facts. No abstract law is plausible in such cases. We now take note of the decision of Hon'ble Gujarat High Court in the case of CIT vs. Manoj Indravadan Chokshi (2014) 50 taxmann.com 419 (Guj) cited on behalf of the assessee b....