TaxTMI 
TaxTMI 
2021 (8) TMI 278
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..../- from both the banks and out of these, cash deposits of Rs. 16,52,725/- were made. Further, assessee explained that he is an employee in a automobile sector and customers deposited cash in his account and the same were paid to the employer. Later on, he changed his view that submitted that the cash deposits were made in Axis Bank out of sales of dress materials of his wife's business in the name of Gitanjali Dress House. Thereafter, the Assessing Officer issued notices u/s. 133(6) of the Act to the persons from which purchases were made and two parties stated that they do not have done any business with Gitanjali Dress House. As the assessee could not furnish satisfactory explanation regarding the cash deposits in the banks, the Assessing Officer made addition of Rs. 15,29,389/- on account of unexplained cash deposits in two banks of the assessee. 5. On appeal, before the ld. CIT(A), the assessee submitted a statement of cash deposited and cash withdrawn from three bank accounts alongwith consolidated cash abstracts and claimed that all the cash deposits can be explained from cash withdrawn from the bank accounts. Ld. CIT(A) forwarded these documents to the Assessing Officer....
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....High Court has confirmed the addition made by the lower authorities, which supports the case of the Revenue. 8. I have heard the rival submissions and perused the record of the case. In this case, initially, the stand of the assessee was that the cash deposited in his bank accounts are from the prospective buyers of vehicles/agricultural implements from where, he is working as Exchange Manager. Later on the cash was withdrawn and handed over to the employer i.e., Automobile Company. When the AO required the assessee to furnished the necessary evidence regarding cash deposit and withdrawn, the assessee immediately changed his version and submitted that the cash deposits are out of sale proceeds from his wife business. In the remand report, the Assessing Officer has stated that scrutiny of bank statement reveals it to be inconsistent with the fact of the same being, apart from withdrawn in cash and by cheques for ostensibly personal purchases, on a regular basis and in no insignificant sums. Further, the pattern of withdrawal reveals the account to be employed for transfer of funds in the main. i.e. deposit of cash at one place and its withdrawal at other, the funds being withdrawal....
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....ribunal by confirming the addition as unexplained investments u/s. 69 of the Act. This decision is distinguishable on facts. 10. Here in this case, the material facts strongly indicate a probability that the buyers of vehicles/agricultural implements had deposited the cash in various places in the account of the assessee and it was the liability on the part of the assessee to withdraw the same and alternatively paid the same to his employer. In a situation like this, one may fall into realm of "preponderance of probability" where there are many probable factors, some may go in favour of the assessee and some may go against the assessee but the probable factors have to be weighed on material facts so collected in the form of bank statements. Looking to the facts and circumstances of the case and especially the fact that the assessee is a salaried employee having a meager income and the transaction made through banking channels, I observe that the assessee has used his bank account for the benefit of the prospective buyers of vehicles/implements, his employer only to earn some commission income. Accordingly, I delete the addition and allow this ground of appeal. 11. Ground No. 3 re....
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.... of APB. Ld. counsel further pointed out that from page 30 of APB, which is a copy of bank statement of the assessee with Axis Bank, clearly reveals that these three amounts viz; Rs. 2,19,152/-, Rs. 2,50,000/- and Rs. 1,33,000/- created a credit balance of Rs. 7,29,627/- out of which, the assessee made deposit of Rs. 7 lakhs in time deposit/FDR. Ld. counsel further pointed out that the investment at Sl. No. 1 of Rs. 2,25,000/- has been made on 30.4.2012 out of amount given by the father of the assessee as gift, which is clearly discernible from the bank account of the assessee with SBI available at page 33 of APB, wherein, Rs. 2,10,000/- has been deposited on 4.3.2012 creating a credit balance of Rs. 2,35,379/- out of which the assessee has made investment of Rs. 2,25,000/- in the time deposit/FDR with State Bank of India. Therefore, no addition is called for u/s. 69 of the Act. Ld. counsel prayed that the addition made by the AO on both the counts and confirmed by ld. CIT(A) may kindly be ordered to be deleted keeping in view the documentary evidence submitted by the assessee alongwith confirmation and affidavit. 14. Replying to above, ld. DR strongly supported the orders of lowe....
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....sh the details in support of payment of credit card, the Assessing Officer disallowed Rs. 4,07,700/- treating the same as unexplained expenditure. 19. On appeal, the ld. CIT(A) confirmed the addition. 20. Ld. A.R. of the assessee submitted that the credit card was obtained jointly in the name of the assessee and his wife to meet the requirement of his in-laws at the time of marriage of his sister in-law i.e. wife's sister. Ld. counsel explained that the marriage of sister in law Ms Usha Rani was held on 12.5.2013 but after the engagement for preparation of marriage viz; purchase of household items, gift items, clothing and jewellery, etc was going on after Diwali. Ld. counsel submitted that out of gesture to support the in-laws family, the assessee allowed his wife to make purchases by using credit card and the father-in-law of the assessee gave money to his wife in small amount, which was deposited with the bank to settle the credit card dues. Therefore, this expenditure is not attributable to the assessee as unexplained attracting trigger of section 69C of the Act. Ld. counsel strenuously contended that the assessee is not a rich or well resource person who could make purch....