TaxTMI 
TaxTMI 
2018 (8) TMI 2117
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.... the head Income from House Property and Income from Capital Gains. The Assessee filed return of income for AY 2014-15 declaring total income of Rs.3,00,18,930/-. In the course of assessment proceedings, the AO noticed that there were cash deposits in the Bank A/c. No.2476101000898 maintained by the Assessee with Canara Bank. There were also withdrawals of cash from the very same bank account by the Assessee. The details of the deposit and withdrawal in the bank account was as follows:- 3. The AO called upon the Assessee to explain the source of funds out of which the cash deposits were made by the Assessee in his bank account. The Assessee explained the source of funds for cash deposits as from and out of the withdrawals made from the v....
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.... books of the assesse. Total addition: 17,31,500" 4. On appeal by the Assessee, the CIT(A) confirmed the order of the AO. The following were the reasons given by the CIT(A) for confirming the order of the AO:- 4.4 The appellant has tried to explain the cash deposits by means of cash flow statement for FY 2013-14, however the same also does not retied the true state of affairs. The cash flow statement shows that huge cash is being withdrawn continuously during period 08.04.2013 to 17.09.2013 (these withdrawals are in addition to the withdrawal of Rs.30,000/- per month being made from the hank account and shown as personal drawings) and then the same is being deposited during period 03.10.2013 to 28.02.2014. Here the issue is why a pers....
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.... 8.4.13 Cash Drawn 385292 200,000 203,181 19.4.13 Cash Drawn 385293 200,000 403,181 2.5.13 Personal Drawings 30,000 373,181 2.5.13 Cash Drawn 385295 400,000 773,181 2.5.13 Cash Drawn 385296 300,090 1,073,181 3.5.13 Cash Drawn 394581 500,000 1,573,181 4.5.13 Cash Drawn 394582 500,000 2,073,181 7.5.13 Cash Drawn 394585 25,000 2,098,181 18.5.13 Cash Deposited 150,000 1,948,181 1.6.13 Personal Drawings 30,000 1,918,181 2.7.13 Personal Drawings 30,000 ....
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....sp; 29,000 349,022 18.01.14 Cash Deposited 230,000 119,022 24.1.14 Cash Drawn 20,000 139,022 27.01.14 Cash Deposited 10,500 128,522 31.01.14 Cash Deposited 50,000 78,522 1.2.2014 Personal Drawings 22,500 56,022 25.02.14 Cash Deposited - 10,500 45,522 28.02.14 Cash Deposited 35,000 10,522 24.3.14 Cash Drawn 552028 25,000 35,522 29.3.14 Cash Drawn 552030 11,100 46,622 30.3.14 Personal Drawings 20,000 26,622 31.3.14 Closing Balance &nb....
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....o disbelieve the plea of the Assessee merely on the surmise that it would not be probable for the Assessee to keep the money unutilized. We are of the view that the ratio laid down in the aforesaid judgment will apply to the facts of the present case. If the revenue wants to disbelieve the plea of the Assessee then it must show that the previous withdrawal of cash would not have been available with the Assessee on the date of deposit of cash in the bank account. The AO and CIT(A) have proceeded purely on assumption and surmises that cash would not be lying idle with the Assessee for such a long time. In our view, the Assessee has satisfactorily explained the source of funds out of which deposit of cash was made in the bank account. We there....