TaxTMI 
TaxTMI 
2021 (5) TMI 131
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....l before or at any time of hearing of the appeal." 2. The hearing of the appeal was concluded through video conference in view of the prevailing situation of Covid-19 Pandemic. 3. The brief facts of the case are that the on information being received by the A.O. for the year under consideration that the assessee had deposited cash of Rs. 29,90,300/- in his savings bank account and on verification, it was gathered that the assessee had not filed his return of income for the year under consideration. No compliance was made by the assessee to the letter of NMS issued by the A.O., therefore, proceedings U/s 147 of the Act was initiated after getting approval from the competent authority and thereafter notice U/s 148 of the Act was issued, but neither any reply nor any return of income was filed by the assessee. In response of the show cause notice dated 14/11/2017, the assessee alongwith one person namely Shri Abhishek Agarwal, R/o-139, Mahaveer Nagar-II, Maharani Farm, Jaipur appeared before the A.O. on 21/11/2017. Wherein the said Abhishek Agarwal got recorded his statement that he has used bank account of the assessee and all the transactions in his bank account have been made....
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....eposit/Peak credit amounting. The mere fact that the deposits had been made in the bank account does not indicate that these deposits constitute income. Sufficient cash Balance is available to deposit in bank account. 3. In case of Jaya Aggarwal vs ITO, High court Of Delhi at New Delhi decide that if sufficient cash balance from withdrawal and deposit subsequently then addition to income is not correct and should be deleted. 4. In various cases ITAT and Court decide that cash deposit in bank account is not a part of income the mere fact that the deposits had been made in the bank account does not indicate that these deposits constitute income. 5. On the facts and circumstances of the case the Ld. AO is not justified while making addition as bank deposit/credit entry in bank account. As such assessment may be please be held as bad in law and addition made thereon may kindly be deleted. 6. Similar case decided by ITAT JAIPUR on 2nd May 2019 in case of Neim Khan Vs ITO ITA/283/JP/2018 Assessment Year 2014-15 Neim Khan Vs ITO ward 2(2) Jaipur Similar case law for bank deposits like Jaya Agarwal vs. CIT, ITA Nos. 5430 & 5432/DEL/2011 [Assessment Years....
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....i Krishna Star Realter. On the contrary, the revenue authorities rejected the contentions of the assessee. 8. After having gone through the entire documents placed on record and the statement made by Shri Abhishek Agarwal before the A.O., we found that it is an undisputed fact that the assessee was student and was having two bank accounts i.e. one bank account No. 402010100033503 where the entire transactions during the year under consideration were of Rs. 1,71,500/- which was deposited by his father for college fee and maintenance expenses of Rs. 5,000/- per month which were withdrawn by him and the copy of the said bank statement is at page No. 19 to 24 of the paper book. Whereas the subsequent new bank account bearing No. 909010036473994 was got opened subsequently in which Abhiskeh Agarwal was the introducer and from the statement of accounts of this account which is at page No. 25 to 27 of the paper book and the details of which are reproduced below: S N Date Cheque No Amount Particulars 1 31.10.09 64671 310000 Abhishek Agarwal (Self) 2 31.10.09 64672 6000 Abhishek Agarwal (Self) 3 11.11.09 64673 96600 Ravi Dutt(Fr....
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....ently opened on the introduction of Abhishek Agarwal and which is now under dispute that carries several transactions which all belongs to Abhishek Agarwal, his family members and his friends. Naturally huge withdrawals from the said bank account were for the purpose and objective by the said Abhishek Agarwal as all the cheques were issued in the name of family members of Abhishek Agarwal as well as his friends. From the very beginning, the assessee had made solitary explanation that the said bank account was opened at the instance of Abhishek Agarwal and all the deposits and withdrawals were made by the said Abhishek Agarwal. We found that explanation given by the assessee was not fanciful and sham story. It was plausible and should have been accepted by the revenue authorities, unless there was justification or ground to hold to the contrary. More particularly when the entire explanation was supported by statement of Shri Abhishek Agarwal coupled with bank transactions and affidavit of said Abhishek Agarwal. The revenue authorities should have given due regard and latitude to human conduct and behaviour while considering the validity and truthfulness of an explanation. One should....