TaxTMI 
TaxTMI 
2021 (1) TMI 838
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.... to whether the cash deposits has been made from disclosed sources. On going through the savings bank account No.10305100000077 with Ilkal Co-op Bank Ltd, Ilkal and SB A/c No.10205100028023 with Shri Vijaya Mahantesh Co-op Bank Ltd, Gudur SC, that the assessee has made following cash deposits during the year under consideration:- Ilkal Co-op Bank Limited, Llkal Date Amount of cash deposit 31.05.2014 Rs. 2,00,000 28.06.2014 Rs. 1,00,000 25.08.2014 Rs. 1,00,000 Total Rs. 4,00,000 Shri Vijayamahantesh Co-op Bank Ltd. Gudur SC Date Amount of cash deposit 10.05.2014 Rs. 2,00,000 16.06.2014 Rs. 1,00,000 25.08.2014 Rs. 1,00,000 17.03.2015 Rs. 2,00,000 Total Rs. 6,00,000 The assessee has furnished letter on 27.09.2017 stating that the sources of deposits of Rs. 10 lakhs is out of opening cash balance as on 10.05.2014, which is reproduced below:- Date Particulars Amount Amount 01.04.2014 Opening cash Rs. 7,48,555 10.05.2014 Cash withdrawn from SVM Coop Bank Rs. 2,15,000 10.05.2014 Cash withdrawn from Ilkal Co-op Bank Rs. 60,000 Rs. 2,85,0....
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.... to examine the details of opening capital i.e. credits found in capital account as it is possible that sources for cash cash-in-hand may be from introduction of cash in his capital account. In view of the above, the explanation of the assessee that the sources for cash deposits of Rs. 10,83,000 is out of cash-inhand shown by the assessee and re-deposits out of subsequent withdrawals is not acceptable for the following reasons:- (i)In the absence of details of opening balances, the assessee has prepared statement of affairs as on 31.3.2014 on reverse way on the basis of entries/transactions made during the year in the bank accounts. In order to tally the statement of affairs in particularly opening capital balance shown in the Balance-sheet at Rs. 41,97,331, the assessee has shown cash-in-hand of Rs. 7,48,555. The assessee has furnished cash flow summary for the year 2014-15 relevant to A.Y. 2015-16 but did not give any details of opening capital as on 1.4.2014 shown in the statement of affairs for the year ending 31.3.2014 at RsA1, 97 ,331 to justify his cash in hand shown at Rs. 7,48,555. On verification of cash flow summary, it is seen that the assessee has not....
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....e assessee has brought unexplained money/cash as envisaged in section 69A of the LT. Act, 1961 to the extent of Rs. 1 0,83,000 sources of which remained to be explained. In the light of the above findings, the unexplained money of Rs. 10,83,000 under section 69A read with section 115BBE is brought to tax and added to the total income of the assessee." 4. Aggrieved by the addition of Rs. 10,83,000, the assessee preferred an appeal to the first appellate authority. The CIT(A) confirmed the addition made by the Assessing Officer. The relevant finding of the CIT(A) reads as follow:- "8.1 During the appellate proceedings the appellant was not able to make out any case to show that the additions made by the A.O. were against the facts or in violation of any law. The appellant was unable to prove that sources of the deposits were from withdrawal from capital of earlier years. It is unreasonable and also illogical to say that when business got closed down four years back, the amounts outstanding before 4 years were suddenly brought and kept in bank accounts, without any supporting evidence. Assessee could not produce the facts in support of his claim before A.O. during the time....
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....e case. 6. Without prejudice and not conceding that the entire sums of money deposited, were out of the cash on hand and withdrawals from bank during the year, the authorities below ought to have telescoped the withdrawals during the year, in respect of the cash deposits, hence passed an order without application of mind, on the facts and circumstances of the case. 7. The authorities below failed to appreciate that the opening cash was out of the balance remaining out of the audited accounts of the closed down business, and the statements demonstrate the fund flow up to the year of assessment, on the facts and circumstances of the case. 8. The authorities below failed to appreciate that the appellant had only marginal income which was below the taxable limit and no return of income was required to be filed for the earlier years, on the facts and circumstance of the case. 9. The learned CIT(A) was not justified in facts in appreciating the financials and submissions filed during the course of hearing, to hold that the appellant had not filed documents nor sufficiently explained the source, which is contrary to fact, on the facts and circumstances ....