2021 (10) TMI 1193

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.... 06.09.2021 where the assessee has raised four grounds of appeal which reads as under: "1) That under the facts & circumstances of the case, Ld. CIT(A) erred in confirming the addition of Rs. 79,00,101 made by AO without considering the cash withdrawal made earlier from bank account, which were re-deposited into the bank account, the addition so made is bad in law. 2) That the Ld. CIT(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 ....

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....closing total income of Rs. 16,72,840/-. The AO noted that the return was processed u/s. 143(1) of the Income Tax Act (hereinafter the 'Act'). Later the case was selected for scrutiny and the AO had issued statutory notices regarding scrutiny assessment. According to the AO, the assessee was employed as Principal of Douglas Memorial Higher Secondary School and earned salary from it and earned income from house property and interest income as well. The AO noted that the assessee's case was selected for scrutiny under CASS and reason for selection was mentioned as "large cash deposits in savings bank account". The AO noted that on examination of bank account no. 911010039299503 with Axis Bank at Salt Lake reveals that cash aggrega....

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....ervices 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 According to the assessee, he had withdrawn cash for the purpose of giving advance to the landlords for the agricultural lands. And since the proposed sale/purchase of land did not materialize, he had re-deposited the withdrawn cash back in his either of the five (5) bank accounts which has been duly shown to the Department.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 According to assessee, the amounts deposited in the bank accounts are withdrawn in anticipation of giving advance and later re-deposited when the purchase of land deal fails. ....

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.... addition. Aggrieved by the aforesaid action of the Ld. CIT(A), the assessee is before us. 7. We have heard both the parties and perused the records. We note that the assessee is a principal of a higher secondary school which was functioning on a cantonment land. Since the Ministry of Defense has asked the school to vacate the premises, the assessee being the principal of the school taking into consideration the future of students started a small school for which he was looking for agricultural land to construct the school. According to the assessee, in the previous year (AY 2012-13) the assessee has been assessed at Rs. 61,76,145/- by the AO which fact is emanating from page no. 22 of the paper-book (assessment u/s. 147/143(3) of the Act ....

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....                                                            F.Y.: 31.3.13 DATE PARTICULARS AMOUNT DATE PARTICULARS AMOUNT 1.4.12 To, Opening Bal, C/D 552653.50 2.5.12 By Aix Bank 43.00 4.4.12 To, Axis 900000.00 4.5.12 -DO- 500101.00 10.4.12 -DO- 900000.00 14.5.12 -DO- 900000.00 11.4.12 -DO- 900000.00 15.5.12 Drawings 900000.00 15.4.12 To Suseela Gidla 200000.00   -DO- 900000.00 15.4.12 To Axis Bank 100.00 &....

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....ich 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 prove the source of cash deposits to the tune of Rs. 79,00,101/- from the cash flow statement supra. 9. We note that, the withdrawa....