2018 (8) TMI 1909

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....3. Learned Authorized Representative (the ld. A.R.) of the assessee submitted that the bank account with Surat National Co-operative Bank and Balance Sheet has been disclosed in personal accounts and are reflected in the return of income. The assessee had disclosed this bank account in the return of income from past so many years i.e. from assessment year 2006-07 when there was manual filing of return of income, the said bank account is also reflected in the return and personal accounts filed with the Department. In view of this matter, no addition could be made. With regard to source of cash deposits amounting to Rs. 14, 30,000, it was explained that a sum of Rs. 5, 71,587 was cash in hand as on 01. 04. 2008. The personal set of books of a....

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....ook and cash in hand of Rs. 5,71, 587 and Rs. 66, 065, respectively. The credit of the same is to be given as assessee has clearly proved that the cash in bank is disclosed in the books of accounts and if the same is not considered, there would not be any difference if taxpayers maintaining undisclosed bank account and is still getting the benefit of the of peak theory and the present assessee who had disclosed the bank account in his return of income from past so many years and in A.Y.200607, when there was manual filing, the said bank account is also reflected in the return and personal accounts filed with the Department. In view of these facts, no addition should have been made. Further, without prejudice to the above, it was submitted t....

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....ay of cash in hand of Rs. 5,71,587 and gift of Rs. 5 Lakh and cash receipts from debtors at Rs. 1.45 lakhs as against advance. However, the cash flow statement was not found acceptable by the AO. However, it is true that the assessee is running a proprietary concern of which accounts are disclosed but entries of mentioned in this bank account are not part of proprietary concern business transaction but certainly it could be related to personal set of books of accounts of which the assessee has shown income at Rs. 1,19,001. However, we find that there are cash withdrawals of Rs. 9,92,000 from this bank account therefore; the entire cash deposits cannot be considered as undisclosed income of the assessee hence, benefit of cash withdrawal is r....