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TMI Blog2014 (3) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... as established the correlation between the entries of withdrawals and that of deposits. Merely because the number of transactions was more, that itself is not sufficient to hold that the same has arisen out of the undisclosed income of the assessee especially when the assessee has explained the reasons and requirements of making such transactions further corroborated with books of accounts, bank statements and other relevant documents - The CIT(A) has thoroughly examined and discussed the facts and circumstances of the case and has passed a well-reasoned order deleting the additions made by the AO u/s 68 of the Act – thus, there is no infirmity of the order of the CIT(A) – Decided against Revenue. - ITA No. 7938/MUM/2011 - - - Dated:- 5-3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted income and therefore added Rs.13,31,232/- to the total income of the assessee. 4. Before the CIT(A) it was submitted that the assessee had set-up in February 2004, a partnership firm M/s Reel To Life Pictures (hereinafter called 'RTLP') for producing a feature film. This project was to be funded by partners' capital, trade advances, sundry credits, ongoing earnings and a loan of Rs.30 lakhs from Global Housing Finance Corporation Limited., Mumbai (hereinafter called as GHFC ) vide agreement dated 30.04.2004. Toward repayment of GHFC loan, 36 post dated cheques of Rs.1,08.458/- each were deposited with GHFC. To honour those cheques, the funds were regularly transferred from the assessee s bank account to RTLP. The film pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and creditworthiness of the lenders. He further observed that there were minor discrepancies regarding the narrations in a few cases which had been explained by the assessee due to oversight and fatigue. The loans were repaid also and were not outstanding at the end of the year which proved that the transactions were genuine. During the course of assessment proceedings, Bank Book, Statement of Friendly loans in cash, Statements of Bank Accounts, Statement of cash deposited and withdrawn during the year, Summary of cash transactions, Confirmation of Friendly Loans and Cash Book were furnished to the AO. Breakup of personal withdrawals of Rs.10,40,369/- from Cash-in-hand and withdrawals of Rs.17,97,996/- from the Bank Account was also submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cash balance available to the assessee in its books of accounts, addition under section 68 can not be made irrespective of the time between the earlier withdrawal from the bank and such deposits. In the case in hand also, the assessee has established the correlation between the entries of withdrawals and that of deposits. Merely because the number of transactions was more, that itself is not sufficient to hold that the same has arisen out of the undisclosed income of the assessee especially when the assessee has explained the reasons and requirements of making such transactions further corroborated with books of accounts, bank statements and other relevant documents. The ld. CIT(A) has thoroughly examined and discussed the facts and ci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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