TaxTMI 
TaxTMI 
2021 (10) TMI 1193
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....(A) erred in confirming the addition of Rs. 79,00,101 made by the AO rejecting the cash flow statements which categorically reflects a direct link between withdrawal of cash from bank and re-deposit of the same into the bank account of the appellant and thereby explains the source of the amount deposited into bank. 3) That under the facts & circumstances of the case Ld. CIT(A) was wrong in confirming the whimsical addition of Rs. 79,00,101 made by the A.O as an income from undisclosed sources, based on suspicion, surmises 8 Conjecture and ignoring the glaring and explicit evidence specifically the source of captioned deposit explained through the evidence produced during the course of hearing. Therefore, such addition is liable to be struck down. 4) That the Ld. CIT(A) ignored the fact that the A.O had nothing on record and he could not produce any evidence as such to show that the amount withdrawn from the bank has been used elsewhere instead of depositing the same into bank. 5) That the appellant craves to add or amend any grounds of appeal on or before the date of hearing." 3. From the perusal of the aforesaid grounds of appeal preferred by the asse....
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....ly asked to explain the source of such cash in his hands to deposit in account with credible evidence, the assessee replied that he was principal of school which was running on a cantonment land and since the Ministry of Defense has asked them to vacate that premises, he being a principal taking into consideration the difficulties that would be faced by the students, started a small school for which he was looking for land. According to him, since the lands in the municipal area would be costly, he was looking for lands in the village/agricultural lands and for that he had approached the services of few brokers who had assisted him in locating few lands for sale. According to the assessee, he had withdrawn cash for the purpose of giving advance to the landlords for the agricultural lands. And since the proposed sale/purchase of land did not materialize, he had re-deposited the withdrawn cash back in his either of the five (5) bank accounts which has been duly shown to the Department. Before the AO/CIT(A), the assessee had filed cash flow statement to buttress his explanation/contention, which has not been rebutted by either of them but they ignored it. According to assessee, the am....
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....albeit by later order dated 21.12.2016) wherein the total income as per computation made by the assessee to the tune of Rs. 61,76,145/- has been accepted. In this AY 2013-14, the assessee had filed return of income showing Rs. 16,72,840/-. The AO has noted that the assessee had earned income from salary, house property and interest income. It is noted that the assessee's case was selected for scrutiny under CASS for the reason that there was "large cash deposits in savings bank account". The AO noted that the assessee had bank account no. 911010039299503 with Axis Bank wherein he had deposited an amount of Rs. 89,00,101/- during the assessment year (from 04.05.2012 to 17.11.2012) when asked by the AO to explain the source of such cash deposits, the assessee stated that the aforesaid reason for withdrawal of cash for the purpose/intention to give advance for purchase of agricultural land. According to the assessee, the cash deposits were in fact the amount which was withdrawn from one of his five (5) bank accounts and later on re-deposited into his bank account. The assessee had submitted the cash flow statement which has been reproduced by the AO in his assessment order. The Ld....
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.... 24.12.12 -DO- 2000000.00 25.2.13 -DO- 1000000.00 1.3.13 -DO- 2000000.00 6.3.13 -DO- 975000.00 To, Rent received 20174.00 3.3.13 By, Ba. B/D 10216885.15 22037029.15 22037029.15 8. The Ld. AR has drawn our attention to the each of the withdrawal from three bank accounts, statements of which is placed from page no. 2 to 10. We note that the assessee had the following disclosed bank accounts: a) Axis Bank, Barrackpore Br, S/B-910010036526250 b) Axis Bank, Barrackpur, S/B-4360101002351550 c) Axis Bank, Sector- Branch, S/B-911010039299503 d) State Bank of India, Titagarh Br., S/B-10156723982 e) Axis Bank, Sector-V Branch, S/B-912010023970893 The Ld. AR has drawn our attention to each withdrawal and deposit of amount in the bank accounts of the assessee and has linked withdrawal with the deposits made by the assessee. Thus we note that the assessee has been able to discharge the onus to pr....