TaxTMI 
TaxTMI 
2019 (9) TMI 254
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....closed sources, despite the fact that the assessee has furnished all information with necessary evidence regarding cash in hand as on 01.04.2012 out of which Rs. 61,32,575/- has been added by the AO as income from undisclosed sources based on whims and surmises which is not sustainable in law." 2. During the course of hearing, the ld. AR submitted that the assessee worked with the Indian Navy as Engineer till 31.08.1995. Thereafter he worked as a Marine Engineer Officer with various companies on contract basis till June, 2012. In the meanwhile, due to illness of his father who was carrying out the business of general merchant as proprietor of M/s A.K. Agencies, he took over the said business in AY 2006-07. He enjoyed NRI status till AY 2012-13. For the year under consideration, the assessee filed the return on 28.09.2013 declaring income of Rs. 5,75,480/- in the status of Resident but Not Ordinary Resident. 2.1 The AO observed that during the year, the assessee has deposited cash of Rs. 25,20,000/- in Allahabad Bank Account, Rs. 46 lakhs in his PNB Account, Rs. 10 lakhs in BOI Account, Rs. 10,56,000/- in BOB Account and Rs. 2,33,40,000/- in Dena Bank Account. Apart from this,....
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....sessee from any other sources. In the absence of any detail of expenses incurred by the assessee in this period, the cash opening balance has no relevance and the entire withdrawal cannot be said to have been available for being re-deposited. The assessee therefore, has not been able to link the cash withdrawn from the bank with cash deposit. Accordingly, Ld. CIT(A) after relying on various case laws reproduced at page 11 of his order, confirmed the addition made by the AO. 2.5 It was submitted by the ld AR that in the above factual background, the only issue in the present appeal is the reasonability of availability of opening cash of Rs. 1,22,50,000/- claimed by the assessee. It may be noted that the family of the assessee consists of himself, his wife, one son and one daughter. The assessee for most of the time remained on High seas and his expenses were borne by the employer. The assessee has his own house where his wife and children were staying. The family of the assessee maintains a normal living. The daughter of the assessee joined MBBS course in June, 2012. The son was studying engineering in JNNIT, Jaipur. Therefore, withdrawal of Rs. 5 lakh per annum assumed by ....
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....rores towards the deposits of cash in his bank accounts which the AO had questioned. Secondly, out of the above amount, he claimed that Rs. 81,17,425/- was withdrawn during the last 4 years only. Further, he had additional income from business, pension and interest as well. The AO on his part held that the expenses of his children's technical education & his living standard show that receipts from other sources would not be sufficient to meet the familial needs. Hence, the withdrawals as mentioned above in the past 4 years in cash would have to be used for such expenses. He further held that explanation that such amounts were kept at home is practically untrue when he had several bank accounts & could easily have put the funds in a fixed deposit for later investment as planned & claimed by the assessee. Accordingly, the opening cash balance claimed as per a self generated cash book was reworked by him as under:- Opening balance shown Rs. 1, 22, 50,000/- Withdrawals in past 4 years 81, 17,425/- Less household expenses @ Rs. 5 lakhs per year 20, 00,000/- Available cash balance (opening) 61, 17,425/- If this a....
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....m any other sources. The A/R has not controverted the finding of the AO with any concrete or cogent material to show that the deduction out of the above 4 years' withdrawals was not justifiable. Further, he has also not talked about what was the source of the balance amount because under no circumstances could it be believed that the entire cash withdrawn over last 15 years or so was available with the appellant as opening balance. Then what was the purpose of withdrawing it? In the absence of any detail of expenses incurred by the assessee in this period the cash opening balance has no relevance and the entire withdrawal cannot be said to have been available for being re-deposited. Moreover the withdrawals of 4 years being available as cash in hand are not probable. The assessee therefore has not been able to link the cash withdrawn from the bank with cash deposit." 4. We have heard the rival contentions and perused the material available on record. It is noted that during the last four years, the assessee has withdrawn Rs. 81,17,425 from his bank account which has been claimed in support of opening cash in hand. The AO has however estimated household expe....