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TMI Blog2016 (4) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... of India in order to check the genuineness of the transactions. For example, a person whose annual income is ₹ 20,000/- with which he runs his living show claims that he purchased a diamond necklace worth ₹ 2 lakhs and informed the A.O. that he has bought it from out of his savings. Now when we apply the human probability test, we can easily infer that the assessee cannot have bought that necklace out of his income. In the present case on hand, though assessee claims that he had sources for cash deposits, the sources claimed and corresponding evidences fails to pass the human probability test. The CIT(A) after carefully examined the evidences filed by the assessee has elaborately discussed each and every item of source claimed by the assessee and after considering the facts and circumstances, allowed relief of ₹ 3,00,000/- and confirmed the addition to the extent of ₹ 36,04,000/-. We do not see any error or infirmity in the order passed by the CIT(A). Hence, we inclined to upheld the order of CIT(A) - Decided against assessee - I.T.A.No.241/Vizag/2014, S.P. No.19/Vizag/2015 - - - Dated:- 25-2-2016 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT(A), the assessee reiterated the submissions made before the A.O. The assessee further submitted that the A.O. was not correct in rejecting the evidences filed by the assessee to substantiate the sources of income to prove the cash credits into the bank account. The assessee further submitted that he was in employment since 1977 and from his employment, he had saving of ₹ 8,21,798/-. Further, during the year under consideration, he had received a sum of ₹ 5,09,000/- from sale proceeds of Sarugudu Thota. The assessee further submitted that he had used his wife savings of Rs. 10,46,675/- for cash deposits into bank account. The assessee further submitted that his wife was a Post Graduate in Public Administration conducting tuition classes for the students. She has earned income from tuition classes and also interest income. To this effect filed a cash flow statement along with affidavit from his wife to prove that she had income from tuitions. Similarly, the assessee claimed to have received cash gift of ₹ 8,21,798/- on the occasion of his son s marriage and filed a list of such donors along with confirmation letter from few donors confirming the donations giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... losed sources. The A.O. without assigning any reasons summarily rejected the evidence filed by the assessee and made additions u/s 69A of the Act which is not correct. The Ld. A.R. in support of his arguments relied upon the Hon ble High Court of Gujarat decision in the case of Pipush Kumar O. Desai Vs. CIT reported in 247 ITR 568 (2001) and also ITAT Delhi Bench decision in the case of Inderjit Singh Sabarwal Vs. ACIT reported in (2012) 31 CCH 420 and submitted that when availability of cash was explained by the assessee with the help of cash flow statement, the CIT(A) was not justified in sustaining part of addition made on account of unexplained investments. Therefore, requested to delete the additions made by the assessing officer. The Ld. D.R. on the other hand, strongly supported the order of CIT(A). 5. We have heard both the parties and perused the materials available on record. The A.O. made additions of ₹ 40,04,000/- u/s 69A of the Act, towards cash deposits into bank account. The A.O. was of the opinion that the assessee failed to explain the sources for cash deposits with evidences. It was the contention of the assessee that he has sources for cash deposits and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tement filed by the assessee, we noticed that he has arrived cash surplus of Rs. 7,88,875/- from the financial year 1998-99 to financial year 2008-09. On further verification of cash inflow, outflow and surplus, we are of the opinion that the cash flow statement was prepared with a pure guess work which was not supported by any evidences. Further, the assessee has failed to explain how his life time savings was kept in the form of only cash and deposited into bank account during the year under consideration. Further, he claimed to have savings of ₹ 4,50,000/- prior to 1998-99, but failed prove the availability of cash with any evidences. As for as sale receipt of Sargudu Thota, assessee filed two cash receipts from a buyer of the product which were issued in white paper, therefore, these cash receipts cannot be considered as genuine documents to prove the transaction. 7. Coming to the other sources of income claimed by the assessee. The assessee claims that his wife s savings of ₹ 10,46,675/- was utilized to deposit the cash into bank account. It was further claimed that his wife was a Post Graduate and she was earning by conducting tuitions. A cash flow statement w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vit from the persons to explain the sources recorded in the cash flow statement. Therefore, the A.O. was not justified in rejecting the evidences without assigning any reasons. 9. We have gone through the case laws relied upon by the Ld. A.R. in the light of the facts of the present case and finds that the case laws relied upon by the assessee are not applicable to the facts of the present case. The case before the Hon ble High Court of Gujarat was that the assessee has explained the sources with the help of cash flow statement and filed adequate evidences in support of the sources claimed in cash flow statement. Similarly, the ITAT Delhi Bench in the case of Inderjeet Singh Sabarwal (supra) held that the assessee has furnished sufficient details with regard to the sources. 10. In the present case on hand, though assessee filed cash flow statement and also affidavit from his wife affirming having income from tuitions and interest, he failed to furnish cogent evidences to prove the genuineness of the transactions. The assessee claimed to have savings from his salary income and agricultural income. His claim that his life time savings was kept in the form of cash and deposited ..... X X X X Extracts X X X X X X X X Extracts X X X X
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