AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (6) TMI 1114
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....(NFAC), Delhi [in short ld. "CIT(A)"] dated 17.08.2021 arising out of the assessment order framed u/s 143(3) of the Act dated 31.12.2019. 2. The assessee is in appeal before the Tribunal raising the following grounds: "1. That, on the facts and in the circumstances of the case, the Ld. C.I.T.(A), NFAC erred in law in upholding the addition of Rs.94,50,000/- in the garb of unexplained cash credit u/s 68 of the Act on the alleged ground of the assessee's failure to establish the generation of cash deposited in the bank in high denomination during the demonetization period when he himself found no unusual or sudden deposit of cash indicating inconsistency, but rather found nexus with total cash withdrawal of Rs. 1,02,75,000/- from the bank ....
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....onetization period and hence the allegation that the same denomination currency notes were not deposited was totally illogical, baseless and unsustainable in law. 5. That, on the facts and in the circumstances the ld. revenue authorities solely on suspicion, surmise and conjecture have taken an adverse inference against the assessee in having deposited its undisclosed income in SBN during the demonetization period and added a sum of Rs.94,50,000/- u/s 68 of the Act when the conditions precedent to invoke the said section were not satisfied in this. 6. That, as the order of Ld. C.I.T.(A), NFAC on the above issues suffers from illegality and is devoid of any merit, the same should be quashed and your appellant be given such relief(s) as p....
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....8.11.2016 the assessee had no option except to deposit the same in the bank. 4. Ld. AO further enquired into the transaction and got the information of the denomination of the currency received by the assessee on withdrawal from Tamilnad Mercantile Bank and matched with the cash currency deposited in the Union Bank of India and came to a conclusion that the assessee had at least 1878 nos. of 500 old currency notes in hand as 01.11.2016 and the same did not match with the currency notes deposited on 16.11.2016 which are of 1000 old currency notes. Though the assessee submitted the cash book and all necessary details but the same could not satisfy the ld. AO and he proceeded to make the addition u/s 68 of the Act for unexplained cash credit ....
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.... failed to produce the cash book. 3.1.1 Section 68 provides that any cash credit found in the books relating to which appellant offers no explanation about the nature and source thereof or such explanation is unsatisfactory, such credits could be charged to tax as income of the appellant. The principle embodied in section 68 is only a statutory recognition of what was always understood to be the law based upon the rule that burden of proof is on the taxpayer to prove the genuineness of borrowings or other credits in his books, since the relevant facts are exclusively within his knowledge. The expression "nature and source" has to be understood together as a requirement of identification of the source and the nature of the source, so tha....
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....ed accounts of the assessee. The additions made by ld. AO are clearly based on surmises and conjectures and there is no reference to any documentary evidences in the assessment order to remotely suggest that cash deposits were unexplained or ingenuine. It was also stated that enquiries conducted by the ld. AO with the banks and the replies filed by the bank in response to the notice issued u/s 133(6) of the Act were not shared with the assessee during the course of assessment and this act of ld. AO in not allowing an opportunity to the assessee to examine the material gathered by the ld. AO in the course of his enquiry during assessment is not as per law. Reliance was place on the decision of Hon'ble Supreme Court in the case of Andaman Tim....
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....claimed by the assessee, this cash was withdrawn on various dates during July, 2016 and October, 2016 for making investment in unquoted shares and also for giving advance or purchase immovable properties. So far as this fact of withdrawing of cash is concerned the same has not been disputed by the Revenue authorities at any stage. The assessee's claim is very simple that the source of cash deposit of Rs. 94,50,000/- is the cash withdrawn of Rs. 1,02,75,000/- on various dates during the year itself which were before the announcement of demonetization scheme on 08.11.2016. 8.3. The first observation of the Revenue authorities that why the assessee kept the funds idle with it for few months seems to have no merit in our view as it is the prer....