TaxTMI 
TaxTMI 
2021 (11) TMI 239
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.... impugned addition made by the AO on the account of the cash deposits of Rs. 13,50,000/- in the bank account under the head of. The addition so made and confirmed being contrary to the provisions of law and facts kindly be deleted in full." 2. During the course of hearing, the ld A/R submitted that the relevant facts in brief are that the assessee filled ROI on 05.07.2014 declaring total income of Rs. 2,05,080/-, consisting of income from Salary from Punjab Kesri, Rental Income from House Property, and Fee receipts and advertising commission and interest from S.B. A/c. During the assessment proceeding, the AO noticed that assessee has deposited cash of Rs. 13,50,000/- in his saving account (i.e. Rs. 10,00,000/- in SBI A/c and Rs. 3,50,000/- in Punjab National Bank) as tabulated at Pg-2 of the impugned assessment order. When asked, the assessee submitted that the same was sourced out of the past savings of the preceding years` withdrawals from the same very accounts. In support, he submitted Bank Books i.e State Bank of India A/c No. 10927256219, State Bank of Bikaner & Jaipur A/c No. 6116128932 and Punjab National Bank A/c No. 07260000300264723. Similarly, the assessee submitted....
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....Printing Press Pvt. Ltd', Ajmer on 31/ 01/ 2011 and had received retirement benefits (1) Gratuity Rs. 2,60,377/- (2) PF Rs. 6,39,146/- (3) Pension Rs. 17,316/- Total Rs. 9,16,839/- and all these sums were deposited in Bank Accounts and the receipt had been shown in computation of Income for A/ Y 2011-12 and were duly withdrawn from the Bank." 4. After receiving total amount on retirement of Rs. 9,16,839/- i.e. Gratuity Rs. 2,60,377/-was deposited in SBI A/c on 20.04.2011 and PF Rs. 6,39,146/- was deposited in PNB Bank on 24.12.2011 and there after cash withdrawal were made therefrom on various dates as per Cash Book. The amounts withdrawn in cash was partly utilized and partly available and the balance was shows opening cash in hand of Rs. 5,43,750/- as on 01.04.2012 and after recording further cash transactions of receipts / payments, the opening balance was of Rs. 12,60,650/- as on 01.04.2013, relating to A.Y. 2014-15. 5. It was further submitted that both the lower authorities have completely ignored one important aspect and admitted fact that the assessee had sold a residential house no. 5-L-26, Mahaveer Nagar-III, Vistar Yojna, Kota on 23.10.2013 to Shri Pramod Kumar....
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....urchase of plots all took place on 20.01.2014 or in any case 08.01.2014 therefore, these transactions are not relevant. 8. It was further submitted that the AO completely misdirected himself by considering the opening balance in the both bank accounts of Rs. 1,56,000/- which is not at all relevant once the assessee prepared a cash book considering the cash deposits and cash withdrawal transactions from the banks and other cash withdrawal etc. Further, while cash book / cash flow statement filed and was not rejected, there is no scope for the AO to deem some utilization elsewhere because the settled law is something contrary to approach of the authorities below. The AO was bound to establish the utilization of the available cash elsewhere. In this way, the availability of the sufficient cash on the different dates of deposits could not be disputed. 9. It was submitted that the AO purportedly ignored these facts by recording a completely incorrect finding of facts that during F.Y. 2013-14 there was no cash withdrawal made by the assessee which was a blatant mistake committed by him in as much as a bare of cash summary of the cash book for F.Y. 2013-14 shows cash withdrawals of ....
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....ence........" Our Submissions: Factually incorrect and result of preconceived notion and absence of judicious consideration of the submission." 11. With regard to the strength of family and household withdrawals kindly refer submissions dt.30.07.2020 to the AO, pursuant to specific query raised by the AO during assessment proceedings which read as under: "In this regard it is submitted that my family consists of self, wife Smt. Seema Mathur age about 51 years, two sons namely Shivank Mathur age about 20 years studied in B. Tech from Jaipur, and Harsh Mathur age about 16 years studying in 10th Class in Springdales School, Borkhera Kota. My family is residing in our house C-40, Trivia Away, Bajrang Nagar Kota. It is submitted that drawings towards house hold expenses for A/Y 2014-15 had been (1) Sunil Mathur Rs. Total 171200/- (2) Seema Mathur(Wife) has also withdrawn of Rs. 92400/- from her earnings. She is working as a librarian in R.M. Memorial Girls B.E.D College Baran Road, Kota and receiving the salary in cash @7700 P.M. Copy of Salary Certificate is enclosed herewith. (3) Shivank Mathur (son) is 22 year old and studying of Engineering in Jaipur. He is havi....
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....,000/- and on 27.11.2013 of Rs. 2 lakhs. Thus the total cash deposit of Rs. 13.50 lakhs was in the latter half of financial year 2013. 14. The appellant on his part explained that he had received Rs. 5 lakhs advance for sale of property from Raghuveer Singh 8E, Bhom Singh on 20.01.2014 and he had withdrawals in earlier years and the cash in hand was Rs. 12,60,650/- on 31.03.2013. The A.O. disputed the same by mentioning the low opening balances in the bank accounts totaling to Rs. 1.56 lakhs only as on 01.04.2013. He also mentioned that during the financial year, no amounts were withdrawn in cash. He has held that the amounts withdrawn in earlier year were deemed utilized in household expenses and held the amount of cash of Rs. 13,50,000/- as being income from other sources. The appellant has not been able to establish any nexus between the cash withdrawn in earlier years being available with him for redeposit in the current year under appeal. The cash book is also found to be self-serving in the absence of independent evidences and has not been enclosed in the appellate proceedings. The agreement of sale involving advance against properties is a....