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2024 (1) TMI 992 - ITAT SURATAddition u/s 69A - cash balance on account of withdrawal from different bank accounts - lower authorities to disbelieve the theory of cash flow as to why the cash remained in hand for long period - Assessee submits source of cash withdrawal is mainly from the loan availed by assessee and once AO accepted that assessee has made withdrawal from his bank accounts and has not brought any evidence that withdrawal of amount was invested elsewhere or incurred on any expense, the cash balance available with the assessee was to be believed - HELD THAT:- From the documents filed before the lower authorities as well as before me the assessee has also proved the cash withdrawal, even such fact is accepted by assessing officer. The only reason for making addition is as to why such cash was kept by the assessee for a longer period. DR also opposed the submissions of the assessee that despite having bank account, as to why the assessee kept such huge cash in hand. As assessee argued that there is no limit or restriction of keeping the cash at home, we find merit in his submissions that there is no such restriction in law - cash in hand shown by the assessee is duly explained and recorded in his cash book and source of which is known, which is clearly seen form the withdrawal from the bank on various dates. AO has not brought any adverse material or evidence on record that the cash in hand was beyond the withdrawal from bank - once the assessee explained the source of cash in hand, the assessing officer was not justified in doubting the availability of such cash in hand for the sole ground of long period of holding, without brining rebutting such contention. Decided in favour of assessee.
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