TaxTMI 
TaxTMI 
2020 (5) TMI 438
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....vailable before him. 5. The learned Commissioner of Income tax (Appeals) ought to have noted that the appellant had enough cash balance available with him on the relevant dates for cash deposits as the unspent amounts out of earlier withdrawals were available for re-deposit on subsequent dates. 6. The appellant objects to the levy of interest charged u/s 234A, 234B and 234C. 7. The appellant reserves the right to add to, modify, alter, amend or delete any of the above grounds. 8. For these and such other grounds as may be advanced at the time of hearing, it is prayed that the additions / disallowances made by the learned Assessing Officer be deleted and the returned income be accepted." 3. The facts of the case are that the assessee is an individual engaged in the business of textile and handlooms and running his business in the name and style of M/s.Murthy Enterprises. The assessee declared income from business of Rs. 1,54,413, income from house property of Rs. 1,26,000. During the course of assessment proceedings, the assessee was asked to explain the source of income for cash deposits made of Rs. 1,06,19,947 in savings bank accounts during the financial year 2014-2015 ....
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....mentioned that the assessee has been given ample opportunity to appear before him and a number of hearing notices on 25.05.2018, 02.11.2018, 13.11.2018, 30.11.2018 and 09.01.2019 were served and on these dates the assessee / AR either appeared and sought adjournment or filed a letter for adjournment, and in all the adjournment letter AR submitted that 'the above said case is posted for hearing on 25.05.2018, the appellant is in the process of collecting certain information and additional evidences to be filed, that are germane to the above appeal which is going to take a short time.' The case was finally posted for hearing on 23.04.2019, on which the date neither the assessee appeared nor filed submission or sought for any adjournment. Therefore, the CIT(A) was of the opinion that the assessee has nothing to submit against the order of the AO. The learned AR submitted that the CIT(A) himself has noticed in his order that the assessee / AR appeared on all the earlier dates of hearing and sought adjournment. Only on the last occasion of hearing on 23.04.2019 there was no appearance by the AR, nor filing of submission and seeking of adjournment. The learned AR submitted that the notic....
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.... 6. I have heard the rival submissions and perused the material on record. In this case, the Assessing Officer found that the assessee has deposited a sum of Rs. 1,06,19,947 in the saving bank account with ICICI Bank. The assessee was able to give explanation to the source of an amount of Rs. 86,27,558, however, the assessee has not led any evidence before the A.O. with regard to the balance amount of Rs. 19,92,389. Before me, the learned AR submitted that proper opportunity has not been granted to the assessee to explain the source of deposit with the bank. Further, it was submitted that the A.O. has not agreed with the opening balance of cash available to deposit in the bank and the earlier withdrawals to redeposit in the saving bank account. The assessee filed day to day cash in hand position before me and submitted that earlier withdrawals were available with the assessee to deposit that amount and due credit to be given to such earlier withdrawals as available to deposit with bank account. According to the learned DR, the earlier withdrawals made by the assessee should not have redeposited with the bank account. The assessee submitted that the assessee withdrawn money from ba....
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....rwise, he submitted that the earlier withdrawals have been made to meet particular expenditure and not for redepositing with the bank account. The assessee's main plea is that the assessee had withdrawn huge amount from the said bank account on various dates and kept the said amount idle with the assessee and redeposited the same into the bank account. To this effect, the assessee has furnished the statement showing withdrawals and cash in hands on various dates. While completing the assessment, the Assessing Officer give credit to only Rs. 10 lakh and the balance amount, he disbelieved and treated the said amount of Rs. 17,45,300 as unexplained income of the assessee. The Assessing Officer has not accepted the contention of the assessee, since the assessee has not filed any fund flow position of the assessee. However, the Assessing Officer did not doubted withdrawals of cash on various dates. The Assessing Officer has also no evidence to prove that the assessee has made withdrawals on various dates for any other purposes. There is also no evidence that the assessee has used this money to deposit in any bank account of him or for his household expenses. In such circumstances, it ....
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....ce brought on record to show that these withdrawals have been used by the assessee or deposited by the assessee in any other Bank. It cannot be said that these withdrawals made from the Bank account were used for household expenses or any other investment. In such circumstances, it cannot be disputed that the withdrawals have been used for redeposit into the Bank account of the assessee. In other words, the Assessing Officer has not disputed the existence of Bank accounts and withdrawal from the same. The earlier withdrawal of Rs. 50 lakhs from the Bank account on 31/12/2013 or withdrawal from various Bank accounts on different dates is not disputed. The assessee might have kept the cash withdrawals with him and redeposited into various Bank accounts on a later date. It is quite possible that the assessee might have withdrawn the cash for some purpose but the same remains to be utilized for one reason or the other and the cash continues to be remained with him. Sometimes it may also happen that the cash withdrawals from Bank accounts continues to remain as cash balance with the assessee even for many months and sometimes cash withdrawn is utilized on the same day. All these probabl....