2025 (3) TMI 1817

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....grounds of appeal: "1) The impugned Order is bad, erroneous and unsustainable in law. 2) The Learned First Appellate Authority and the Assessing Officer erred in not considering the explanation furnished by the Appellant properly. 3) Without prejudice, the Learned First Appellate Authority and the Assessing Officer erred in not considering and appreciating that the Appellant had sufficient cash in hand forming the source for cash deposits during demonetization period, when details of income levels of the previous years were furnished. 4) Without prejudice, the Learned First Appellate Authority and the Assessing Officer erred in rejecting the plea of sufficiency of cash in hand out of past years savings so....

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.... 5. Aggrieved by the order of the AO, the assessee preferred an appeal before the Ld.CIT(A), NFAC, Delhi. Before the ld.CIT(A) the assessee submitted that the return of income for last 3 Assessment years has been filed by the assessee by declaring the following income and shown the availability of cash in hand after reducing the corresponding year's drawings as detailed below: A.Y. 2015-16 Rs. 2,38,202/- A.Y. 2016-17 Rs. 2,38,430/- A.Y. 2017-18 Rs. 2,67,870/- 6. Further, the assessee stated that he has declared interest on loan given under the income from other sources and refund of loan from the borrowers and his accumulated income from past 3 years given as loans is the source for cash deposits. The assessee also fil....

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.... of the lower authorities. 10. We have heard both the parties, perused materials available on record and gone through orders of the authorities below. Admittedly, the assessee has filed his return of income and made a cash deposit of Rs. 10,28,500/- in his four bank accounts during the demonetisation period. The AO has considered the withdrawal made from the bank account on 03.11.2016 to the tune of Rs. 3,26,500/- and considered as explained source for cash deposit. However, the AO has made addition of the balance cash deposit of Rs. 7,08,000/- as unexplained as the assessee did not file any evidence in support of the source except the income tax returns of earlier years and stated the source of cash was from past savings. The same has b....