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TMI Blog2013 (12) TMI 1367X X X X Extracts X X X X X X X X Extracts X X X X ..... s - Decided against Revenue. Discharge of income tax liability before proceedings - Held that:- Assessee had paid the tax before the appeal was heard by the CIT(A), therefore, the ground is not material - Facts on record indicate that assessee discharged the tax liability by the time CIT(A) heard the case - Decided against Revenue. Unexplained income - Held that:- Copy of ways and means account, and copies of bank statement of account from Andhra Bank, Tirupathi and Bank of Baroda are placed to establish that the entries of the said deposits have been appeared in the said statements - Since Assessee has proved the genuineness of his claim by way of documentary evidence - Decided in favour of assessee. - ITA Nos. 770 & 609/Hyd/2011, I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a, Tirupathi. He, therefore, contended that the AO should not have treated the said deposit as unexplained. The AR of Assessee had filed a copy of the ways and means account before the CIT(A) and the CIT(A) noted that Assessee had sufficient funds from which he had deposited Rs. 5,00,000/- with Bank of India. After considering the submissions of AR and also after verifying the details furnished, the CIT(A) deleted the addition of Rs. 5,00,000/- made by the AO. 4. As regards the cash deposit of Rs. 12,00,000/-, the AO treated the said amount as unexplained cash credit and added to the income of the assessee by holding that there was no satisfactory explanation from Assessee and also no books of account were filed. Before the CIT(A) it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rresponding withdrawals. The genuineness of these transactions have been demonstrated by Assessee by way of documentary evidence placed in the paper book as above. Therefore, since the assessment was made based on the ways and means statement, we are of the opinion that the learned CIT(A) has rightly deleted the addition by giving a categorical finding that it is clear from the ways and means account that Assessee had sufficient funds to deposit the amounts in the Banks and, accordingly, we uphold the order of CIT(A) and dismiss the ground raised by Revenue in this regard. 6. In the result, appeal of Revenue in ITA No. 770/HY/2011 is dismissed. ITA No. 609/Hyd/2011 by the revenue for AY 2007-08 7. This appeal is preferred by Revenue a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s against the action of CIT(A) in sustaining the addition of Rs. 18,30,000/-, made by the AO as unexplained income on account of deposits made in the banks, as under: i) Rs. 1,00,000 on 15/03/2007 Bank of Baroda ii) Rs 1,30,000/- on 28/03/2007 Bank of Baroda iii) Rs. 6,00,000/- on 05/04/2006 Andhra Bank iv) Rs. 10,00,000/- on 01/08/2006 Andhra Bank 11. The AO noticed that there was a cash credit of Rs. 1,00,000/- and Rs. 1,30,000/- on 15-03-2007 and 28-03-2007 respectively in the SB account of Assessee of Bank of Baroda, Tirupathi. When it was questioned about the source of the said deposits, Assessee could not reply property and, therefore, in the absence of books of account and satisfactory explanation, the AO treated the said a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but there are no transactions like Rs. 1,00,000 and Rs. 1,30,000 drawn from the appellant's bank account and deposited in Bank of Baroda, Tirupathi. It is seen that the appellant's account with Bank of Baroda is having sufficient balance but it is not known how the said amount has been appearing in the said account and there is no entry as such in ways and means account of the appellant indicating drawings and making deposit with bank. Therefore, in the absence of the same, I am inclined to confirm the addition made by the AO. Hence, this ground of appeal is dismissed. 13. As regards the deposits of Rs. 16,00,000/-, it was submitted that Assessee had drawn these amounts from his ways and means account and deposited the same in Andhra Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posits and withdrawals and each deposit and withdrawal will not figure in the said statement and the opening balance at the beginning of the year and closing balance at the end of the year will only be reflected, thereby the deposits and withdrawals of the entire year are merged leaving the unaccounted sources of the entire representing as the income of that year. He, therefore, submitted that the income disclosed by him is thus the cumulative effect of such bank deposit and withdrawals. Further, it was submitted that Assessee disclosed opening cash and debtors from whom the collections are utilized for such deposits bringing the closing balance of the said cash to a lesser amount. It was also submitted that while accepting the said stateme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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