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TMI Blog2006 (6) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... d by A. M. SAPRE J.—1. This is an appeal filed by the assessee under section 260A of the Income-tax Act, 1961, against an order, dated November 20, 2003, passed by the Income-tax Appellate Tribunal, Indore, in I.T.(SS)A No.38/Ind/02. This appeal was admitted for final hearing on the following substantial questions of law: "1. Whether the Income-tax Appellate Tribunal was justified in holding that the law laid down by the Supreme Court in CIT v . Vindhya Metal Corporation [1997] 224 ITR 614 and Union of India v. Ajit Jain [2003] 260 ITR 80 (SC) may not apply to the facts of this case because they are rendered in the proceedings initiated at the instance of the assessee in a writ petition under article 226/227 of the Constitu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amounting to Rs. 9.70 lakhs was seized from the assessee. In consequence whereof, assessment proceedings as provided under section 158BC ibid were started against the assessee. In these proceedings, the assessee claimed that substantial amount of Rs. 6,25,000 was withdrawn by him from the bank, i.e., from his business account just a few days before the alleged seizure whereas a sum of Rs. 2,42,992 was taken by him from some persons by way of loan. According to the assessee, he having explained the source of the income and its lawful receipt, the Assessing Officer ought to have accepted the explanation offered by the assessee and dropped the proceedings. The Assessing Officer did not accept the explanation and finding the same to be of no s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ular some of the observations made by the Tribunal in the impugned order. According to learned counsel in the first place, one observation made by the Tribunal was uncalled for and in the second place, the other finding once recorded in favour of the appellant, the appeal of the Revenue should have been dismissed. It was also con tended that when a substantial amount was withdrawn by the assessee from the bank just prior to a few days of the alleged seizure then in such an event, the Assessing Officer should have accepted the explanation so offered by the assessee in relation to the source of income. It was further contended that the reasoning assigned by the Tribunal in rejecting the explanation of the assessee is perverse and hence, deser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was thus rightly rejected. However, so far as the balance sum is concerned, there was an evidence to show that it was withdrawn by the assessee on different dates, i.e., August 6, 1998, August 8, 1998, August 22, 1998, and August 28, 1998, from the bank. Since, it was a few days prior to the date of seizure (September 13, 1998) and hence, one could easily conclude that substantial amount was withdrawn in close proximity with the date of seizure by an assessee. In these circumstances, there was evidence to hold that it is this amount which the assessee had carried with him on the date of seizure or must have carried with him on the date of seizure. When the amount is withdrawn from the bank from account and when it is substantial in natu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the bundles of notes had the name of "A" bank or "B" bank, the fact that the amount was withdrawn from the bank was not disputed, the benefit of the same should have been given to the assessee and, lastly, the reasoning assigned by the Tribunal was too technical so as to deny the benefit to the assessee. In this view of the matter and in the light of what we have held, we do not concur with the reasoning of the Tribunal and hence, reverse the same by preferring to concur with the reasoning of the Commissioner of Income-tax (Appeals). 10. In view of the foregoing discussion, once we come to the conclusion that the explanation offered by the assessee was adequate, sufficient and justifiable on the facts and the same should have b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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