TaxTMI 
TaxTMI 
2019 (3) TMI 573
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.... of Rs. 27,11,544/- made by the AO with aid of section 69A of the Income Tax Act on account of unexplained money deposited in the bank account. 3. Brief facts of the case are that the assessee was working as a labour contractor. He has filed his return of income on 2.9.2011 declaring total income at Rs. 1,59,620/-. On scrutiny of the accounts, it revealed to the AO that the assessee was maintaining a bank account with Dena Bank wherein he has deposited cash on various dates. By exercising power under section 133(6) of the Income Tax Act, the ld.AO has called for the details from the bank and confronted the assessee to show the source of such deposits. According to the AO, the assessee failed to produce any details and failed to explain s....
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.... Rs. 7,00,000/- and Rs. 7,00,000/- totaling to Rs. 22,00,000/- . Out of this, only a sum of Rs. 20 lakhs may be treated as deposited out of withdrawal of Rs. 20 lakhs made on 28.07.2010. Though, there is a gap of more than 4 months which the appellant has not properly explained but at the same time, Assessing Officer has also not brought on record any other user of the cash withdrawal on 27.07.2010. The Assessing Officer has given sufficient opportunities to the assessee to explain the source of these deposits but he never gave any plausible explanation. Things are not made any more clear even during the appeal proceedings where incomplete explanation has been filed by the appellant. In the case of P.K. Noorjahan (Supra), the Apex ....
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....fficer has also not brought on record any other user of the cash withdrawal on 27.07.2010. Hon'ble ITAT, Ahmedabad in the case of (TO Ward-7(l) Ahmedabad Vs. M/s Murlidhar Icecream & Sweet Parlour in ITA No.531/Ahd/2012 (A.Y. 2008-09) has held as under :- "4.1. The finding of the Id.CIT(A) that there were transactions of cash deposit and withdrawal. This fact is not controverted by the Revenue by placing any contrary material on record. We are of the considered view where there are deposit and withdrawal entries into the bank account, it would be presumed that the amount withdrawn was available with assessee for depositing the same. Therefore, it cannot be concluded that the entire deposits were from unexplained source....
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....the absence of that, simply because there was a time gap, the explanation of the assessee cannot be rejected and hence the addition confirmed by the Ld. CIT(A) is not correct. We, therefore, delete the same. This ground of the assessee is allowed." In respect of cash deposited by the assessee in State Bank of India, Harni Road, Baroda, no relief can be granted to the assessee as it can be safely presumed that the entire cash withdrawals made by the assessee were exhausted for meeting day to day house hold expenses, addition for which is are not separately made. Therefore, considering the totality of the facts of the case, written submissions filed before me, discussion made in para above and judicial decisions cited supra,....
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....a-agent. Since his son got the visa, therefore, it would goad to presumption that money was arranged by the visa agent. To our mind, this is just a bald statement. As per section 68, the assessee should fulfill three ingredients viz. (a) identity of the lender, (b) genuineness of the transaction, and (c) credit-worthiness of the lender. Similarly, section 69 contemplates, what is unexplained investment. Here the assessee made deposits in the bank account which is unexplained investment unless its nature and source is being explained by the assessee to the satisfaction of the AO. The question before the AO was that, what is the source of deposit in the bank account, qua that the assessee has not produced any material. The stand of the assess....