2023 (2) TMI 524

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.... Act, 1961 (in short 'the Act') dated 16.12.2019 for the assessment year 2017-18. The assessee has assailed the impugned order on the following grounds of appeal: "1. On the facts and in the circumstances of the case, that the ld. CIT(A) has erred in sustaining the addition of Rs.17,00,000/- made by the ld. AI as undisclosed investment u/s.69 being cash deposit during demonetization period. 2. On the facts and circumstances of the case and in law, the ld. CIT has erred in applying sec. 115BBE. 3. That the assessee craves leave to add, urge, alter, modify and withdraw any ground/grounds before or at the time of hearing of the appeal." 2. Before adverting any further, I may herein observe that the assessee though....

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....s of the cash withdrawals of Rs.16.98 lac that was made by the assessee from his bank account in September, 2014, it was, therein, claimed by him that the said funds were utilized for sourcing the cash deposits of Rs.17 lac (supra) in his bank account. Observing that the opening capital of the assessee, as was projected in his balance sheet on 01.04.2014 was Rs.25.77 lac ( approx.), the A.O called upon him to explain the basis for formation of the said amount. In reply, the assessee filed with the A.O details of working of capital from the year 2010-11 onwards. It was submitted by the assessee that he had in the preceding year advanced loan of Rs.14,50,127/- to M/s. Anil Electricals and Rs.1,73,584/- to M/s. Anil Marketing, which fact could....

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....as considered the judicial pronouncements that have been pressed into service by the ld. A.R to drive home his contentions. 9. As observed by me hereinabove, it is the claim of the assessee that the amount of Rs.17 lac (supra) deposited by him during the demonetization period i.e. 16.11.2016 to 18.11.2016 in his bank account No.2555101001451 with Canara Bank, Branch : Telibandha was primarily sourced out of his earlier cash withdrawals that were made by him from his aforesaid bank account in two tranches in the F.Y.2014-15, as under: Date Particulars Amount 21.08.2014 Cash withdrawals Rs.9,00,000/- 30.08.2014 Cash withdrawals Rs.6,25,000/- , while for the balance amount was deposited out of the amount which ....

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....Representative (for short 'DR'), which would reveal that the aforesaid amount of Rs.15.25 lac (supra) withdrawn by the assessee during the year 2014 was utilized/invested by him. At the same time, I cannot also remain oblivion of the fact that the cash withdrawals of Rs.15.25 lac(supra) made by the assessee in two tranches, viz. (i) on 21.08.2014 : Rs.9,00,000/-; and (ii) on 30.08.2014 : Rs.6,25,000/-, in all probabilities reveals that having utilized/invested the cash withdrawal of Rs.9 lac carried out by the assessee on the first occasion i.e. on 21.08.2014 would have prompted him to make the second withdrawal of Rs.6.25 lac on 30.08.2014. In so far the balance sheet for the F.Y.2014-15 and 2016-17 that were filed by the assessee before t....