2019 (5) TMI 1556

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....s of law:- "i) Whether the Assessing Officer had discharged the preliminary burden to demonstrate the existence of investments, for the application of Section 69? ii) Whether redeposit of cash withdrawn from bank account constitutes investment under Section 69? iii) Whether Section 69 will apply if the sum had been duly recorded in the cashbook of the appellant-assessee? iv) Whether the appellant-assessee had offered sufficient explanation regarding the re-deposit of cash withdrawn from bank account? v) Whether the Assessing Officer had wrongly exercised his discretion under Section 69 to declare the sum as the appellant-assessee's income? vi) Whether in case of ambiguity in Section 69, the statute must be read in favour o....

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....ssued on 3.2.2016. During the assessment proceedings, the Chartered Accountant of the assessee discovered certain calculation mistakes pertaining to interest income for the assessment year in question. While reconciling the bank statements, the Chartered Accountant of the assessee discovered that there had been an inadvertent omission to include interest income amounting to Rs. 69,347/-. Therefore, while the total interest income was Rs. 2,76,875/-, in the income tax return, income of Rs. 2,07,528/- had been declared. According to the assessee, there was a bonafide mistake in the calculation and there was neither any attempt to conceal nor was any malafide involved. The assessee suo motu revised her income from other sources from Rs. 2,07,5....

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....ad withdrawn money for investment purposes and later re-deposited the same. Aggrieved thereby, the assessee filed further appeal before the Tribunal which was also dismissed vide order dated 14.12.2018, Annexure P.1 on the same ground. Hence the instant appeal by the appellant-assessee. 3. We have heard learned counsel for the appellant-assessee. 4. The only issue arising in the present appeal relates to addition made on account of unexplained cash found deposited in the bank account of the assessee amounting to Rs. 20,79,000/- under the provisions of Section 69 of the Act. It has been recorded by the Tribunal that the assessee had deposited cash to the tune of Rs. 20,79,000/- in her bank account in the relevant previous year. When the ....

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.... findings of the Assessing Officer that the cash withdrawal which was attributed to having been retained by the assessee and deposited in the impugned year, was 8-9 months old and though the assessee had claimed that the same was kept by her in the form of cash in hand, it was noticed that despite such huge amount of cash available with her she had taken loans thereafter and even made further withdrawals from the bank of substantial amounts. Moreover, the learned CIT(A) has noticed that the assessee had claimed that the amount had been withdrawn for making investment and since the investment did not materialize the same was re-deposited. But the deposit was made in a staggered manner over a period of three months. None of the facts as point....