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TMI Blog2014 (6) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... is a spiritual healer by profession and is also engaged in the business of selling precious magic stones. From the AIR information, the AO noticed that the assessee has deposited an aggregate amount of Rs.26,27,000/- in his bank account maintained with M/s DCB Bank. The assessee did not explain about the sources for making the above said deposit. Hence the AO assessed the same as the income of the assessee by invoking the provisions of sec. 68 of the Act. The Ld CIT(A) also confirmed the addition and hence the assessee has filed this appeal before us. 4. We have heard the rival contentions and carefully perused the record. A perusal of the order passed by Ld CIT(A) shows that the first appellate authority has taken the view that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... moneys in the bank account and, therefore, holding cash of Rs.26,27,000/- in hand does not arise. Assuming for the sake of brevity that assessee was holding cash in hand, then what was the necessity for the assessee to brow loan of Rs.1,08,629/- from ABN Amro Bank as on 1/4/2008? Moreover assessee could have deposited this cash in hand in a bank account and earned a regular income by way of interest in addition to his regular income from the profession of discourses and business of selling stones. This has not happened because assessee never had such a huge balance running into lakhs of rupees except thousands of rupees. Moreover assessee had a capital balance of Rs.1,55,279/- only as on 31/03/2001 and could not have grown to Rs.24,89,239/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een filing return of income for the past several years. Accordingly, he submitted that the tax authorities are not justified in rejecting the explanations of the assessee altogether. He further submitted that the assessing officer has found the deposits in bank pass book and the Hon'ble Bombay High Court, in the case of CIT Vs. Bhaichand H Gandhi(1983)(141 ITR 67) has held that the cash credit shown in the Pass book but not shown in the Cash book maintained by the assessee does not fall in the ambit of sec. 68 of the Act. When it was pointed out that the assessee has got an obligation to explain the sources of deposits u/s 69 of the Act, the Ld A.R submitted that the bench may make a reasonable estimate of cash available with the assessee o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of account, on the basis of the judgment of the Supreme Court in the case of A.Govindarajulu Mudaliar Vs. CIT (1958)(34 ITR 807), it is the onus of the assessee to explain the cash received by him and if there is no explanation or acceptable evidence to prove the nature and source of the receipt, the amount may be added as the assessee's income on general principles and it is not necessary to invoke section 68, nor is it necessary for the income tax authorities to point out the source of the monies received. Even if section 68 is not applicable, the cash deposit in the bank can be asked to be explained by the assessee under section 69 or section 69B of the Act...." Thus, it can be seen that the onus is placed upon the assessee to ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sides the above, we are of the view that it may not be proper to altogether reject the claim of savings from past income also. Accordingly, by considering the facts and circumstances of the case, we are of the view that it would meet the ends of justice, if the amount saved out of opening capital balance and past income is estimated at Rs.6,00,000/- (Rupees Six Lakhs only). We order accordingly. The assessing officer is directed to grant relief of Rs.6,00,000/-(Rupees Six Lakhs only) from out of the impugned addition. The order of Ld CIT(A) stands modified accordingly.
9. In the result, the appeal filed by the assessee is partly allowed.
Order pronounced in the open court on this 28th May, 2014. X X X X Extracts X X X X X X X X Extracts X X X X
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