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2018 (4) TMI 312 - ITAT KOLKATAUnexplained cash deposits in bank account - Held that:- We find force in the arguments advanced by Ld. AR for the assessee that entire cash deposit cannot be treated as undisclosed income of the assessee without giving the benefit to the drawing of cash made by the assessee during the year. Moreover the AO should have also verified the amount withdrawn through credit card and its repayment during the year. In case the assessee is able to establish the nexus between the cash deposited and the amount withdrawn during the year then the benefit for the same should be extended to the assessee. Thus, we are of the considered view the entire amount of cash deposit cannot be treated the income of assessee without adjusting the amount of withdrawals from the said bank accounts. Similarly the benefit of the money withdrawn through the credit card should also be given to the assessee if he is able to establish the nexus between them. It was also observed that Ld. CIT(A) has given the finding that personal expense were also incurred by assessee through credit card but no details of such expense was brought on record. But this aspect also needs to be considered. Therefore, we are inclined remit the matter back to the file of AO for fresh adjudication - Decided in favour of assessee for statistical purposes. Penalty u/s 271(1)(c) - Held that:- Addition has been made by the AO on account of unexplained money and cessation of liability on basis of lack of evidence. Though the assessee’s explanation in respect of the credit card transactions and cessation of liability in the absence of sufficient proof was not accepted, that would not mean that the assessee made any deliberate attempt towards concealment of particulars of income. Mere sustaining of addition on the basis of entries in the credit card account would not warrant a conclusion that the assessee had concealed certain particulars of income. It was lack of sufficient evidence for which the addition was sustained in part. We are of the considered opinion that this is not a fit case for levy of penalty u/s 271(1)(c) of the Act, we therefore, set aside the order of Ld. CIT(A) and direct the Assessing Officer to delete the penalty. - Decided in favour of assessee
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