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TMI Blog2010 (11) TMI 970X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Assessing Officer u/s. 68 of the IT Act as unexplained cash deposits. 3. Assessing Officer in this case noted that information had been received showing total cash deposits of ₹ 11,42,000/- made by the assessee with Standard Chartered Bank, New Delhi. Assessee was required to file cash flow statement alongwith details of expenses claimed with bills/ vouchers. Assessing Officer further noted that despite several adjournments, no details were filed. In the absence of any detail Assessing Officer noted that the cash deposits of ₹ 11.42 lacs made with Standard Chartered Bank remained unexplained and the same is treated as income from undisclosed sources. 4. Before the Ld. Commissioner of Income Tax (Appeals) assessee sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he materials placed before me by the appellant. The appellant is an individual who filed return declaring income of ₹ 1,17,250/-. Based on an information that the appellant had made cash deposits of ₹ 11,42,000/- assessment proceedings were initiated. During the course of assessment proceedings the appellant had shown non cooperative attitude and did not filed cash flow statement alongwith the details of expenses claimed with bills / vouchers. The Assessing Officer completed the assessment proceedings u/s 143(3) treating the cash deposits as income from undisclosed sources and another addition of ₹ 44,585/- on account unverified expenses. The appellant has contended that the he was denied sufficient opportunity of being he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted cash amounting to ₹ 10,02,200/- and withdrawals of ₹ 13,93,500/-. This fact substantiate the contention of the appellant that he used to withdraw money from the bank using platinum card to purchaser the agricultural land and villagers asked for payments in cash, and whenever the deal did not materialized he used to deposit the money in bank. The Assessing Officer has not brought out any adverse material on record to controvert the theory of the appellant. Further the appellant has furnished all the relevant documents and nothing adverse was noted. Since, the appellant has successfully explained the source and nature of the cash deposits, the addition made by the Assessing Officer fails the test of judicial scrutiny and is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. Upon assessee s appeal Ld. Commissioner of Income Tax (Appeals) noted that assessee has submitted the details and proof of expenses and the same were sent for examination to Assessing Officer. The Assessing Officer has not commented on this account. Hence, Ld. Commissioner of Income Tax (Appeals) held that in the absence of any contrary remarks /findings, the bills / vouchers are taken as genuine.; Therefore, he held that expenses claimed by the assessee were genuine and justified and the addition made on this account was not sustainable. 10. Against this order the revenue is in appeal before us. 11. We have heard both the counsel and perused the records. We find that Assessing Officer has made adhoc disallowance for the reason ..... X X X X Extracts X X X X X X X X Extracts X X X X
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