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TMI Blog2004 (5) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... dition of Rs. 6,73,000 under s. 68/69 of the Act though the sources of the investments were duly recorded in the books of accounts maintained. The addition be deleted. 3. The assessee denies his liability to pay interest under s. 234A, 234B and 234C of the Act and the same be deleted from the assessment. 4. The appellant craves to leave, add/amend or alter any of the above grounds of appeal. 3. Ground No. 1: The ground No. 1 relating to the addition of Rs. 25,000 made by the AO and sustained by the CIT(A) was not pressed by the learned Authorised Representative of the assessee. It is accordingly rejected as not pressed. 4. Ground No. 2: The facts in brief are that the assessee deals in gold and silver ornaments and a survey was conduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000 27-10-1999 75,000 Total 6,73,000 8. The explanation given by the assessee was rejected by the AO for the reasons given in para 13.1 of the assessment as under: (i) the cash credits are explained as out of 'Tijori account' but no such Tijori account was maintained by the assessee either in the past or in future; (ii) assessee's Tijori account is in the form of petty cash book whereas the Tijori account is maintained for safe custody of the major portion of the cash balance; (iii) the cash was withdrawn and deposited without any reliability of explanation and the assessee's behaviour was opposed to the common prudent businessman; (iv) there was no need for the assessee to keep a separate Tijori account; (v) during survey, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'Tijori account' and not spent must have been available with the appellant much before he started redepositing such withdrawals in his books of account. This has not been done, but the redeposits were made periodically ranging from Rs. 3,000 to Rs. 85,000 over a period of one-and-half months, that too after the series of withdrawals were stopped. Such withdrawals and redeposit put a question mark on the genuineness of the transaction as well as the sources of the credits/deposits in the books of account. The amount withdrawn of Rs. 21,000 on 1st July, 1999 followed by subsequent withdrawals is not understandable. An inference could be made that the amounts withdrawn were either spent for the ongoing construction of the house property or fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant on various dates between 6th Nov., 1999 and 24th Dec., 1999 could not be considered to have been available from the periodical withdrawals made from July, 1999 to October, 1999. The onus cast under s. 68/69 of the IT Act, 1961, has not, therefore, been discharged by the appellant and accordingly, the addition of Rs. 6,73,000 is sustained and the ground of appeal raised by the appellant in this regard falls." 10. The inferences drawn by the AO and by the CIT(A) are impliedly based on two presumptions; one, that the assessee needed funds for undisclosed expenses between 1st July, 1999 to 27th Oct., 1999, and two, that the assessee had undisclosed income which was deposited in the books of account between 6th Nov., 1999 to 24th Dec., ..... X X X X Extracts X X X X X X X X Extracts X X X X
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