2026 (4) TMI 732

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....the following grounds of appeal: "1. The Ld. CIT (Appeal) has erred in law as well as facts while considering the facts that appellant was not given proper opportunity of being heard in assessment proceeding and assessment order passed ex-parte and therefore on the basis of facts and law the appellant pray your honour that he should get proper opportunity of being heard and provide details for making judicious assessment and therefore pray to restore the assessment by set aside ex-parte assessment order. 2. The Ld. CIT (Appeal) has erred on law as well as on facts while confirming the addition of Rs. 12,27,065/- made by Ld. A.O. on account of unexplained cash deposit in bank account. The Addition is confirmed on conjecture....

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....s also added. The Assessing Officer also made an addition of Rs. 46,590/- being profit from share transactions based on information received from Angel Broking Ltd. Thus, total addition of Rs. 12,73,655/- was made. 4. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(Appeals). In Ground No. 1, the assessee contended that the cash deposits represented family savings accumulated from agricultural and dairy activities and withdrawals from bank, which were used for share trading. The CIT(Appeals) examined the contention and held that the assessee failed to furnish any documentary evidence to substantiate the claim of family savings, such as identity of contributors, their creditworthiness, or evidence of accu....

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....the Act on account of cash deposits of Rs. 12,27,000/- in the bank account of the assessee. The assessee has explained that the deposits were made out of (i) cash withdrawals from the same bank account, (ii) family savings including agricultural income, and (iii) gifts received at the time of marriage in the preceding year. 8. On perusal of the bank statement and cash flow placed on record, we find that to the extent of Rs. 5,96,000/-, the assessee has demonstrated that the deposits are out of earlier withdrawals from the same bank account. The availability of cash from withdrawals and proximity between withdrawals and redeposits lends credence to the explanation of the assessee. It is a settled position of law that once the source of de....