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TMI Blog2016 (8) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... 099 and half of 8920 i.e, 4460 in account number 07644 in BOB, thus aggregate bank balance as on 1.04.2008 was 1,54,264.). Thus the cash in hand on 1.04.2008 was 3,13,345 ( 4,67,709 – 1,54,264 ) and the fact is that the assessee had declared 3,96,814 as income for assessment year 2008-09. In the light of the said documents, we find that the assessee has been able to prove the source of 1,27,470/- and, therefore, we are inclined to delete the addition sustained by the ld. CIT(A) on this issue. - Decided in favour of assessee. Addition on account of accretion in the capital account - Held that:- We find that the assessee has made cash contribution of 4.50 lakhs towards capital account of the assessee in the partnership firm, M/s Harish Hosier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee in this case has challenged the legal validity of the reopening of assessment under section 147/148 of the Income-tax Act, 1961 (hereinafter referred in short "the Act") as well as raised grounds on merit. We are inclined to deal with the grounds that have been raised on merit first. 3. Grounds No.9 and 10 are against the confirmation of addition of ₹ 1,27,470/- made by the Assessing Officer towards cash deposits in the joint saving bank account. 4. The brief facts of the case are that the assessee has furnished the return of income declaring an income of ₹ 3,64,860/- on 29.3.2010. The ITO-I, Faizabad issued a query on 29.6.2012 for which the assessee has replied vide letter dated 14.8.2012. However, the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 8,72,530/- was prepared and submitted and regarding rest amount ₹ 1,27,470/- it was explained same is met though opening cash balance as on 1.4.2008 by both co-account holders. Assessee could not provide or explain any proof on opening cash in hand available to him or other co-account holder, therefore, opening balance of ₹ 1,27,470/- could not be sustained. After verification the information's available on record i.e. detail of rent income earned in cash, other income as per ITR of assessee and other co-owner and cash withdrawal from bank etc. in support of availability of cash to assessee and other co-account holder to the extent of ₹ 8,72,530/- is hereby accepted. Therefore, this ground of appeal is partly allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 1,49,804 in Bank of Baroda account number 0099 and half of ₹ 8920 i.e, ₹ 4460 in account number 07644 in BOB, thus aggregate bank balance as on 1.04.2008 was ₹ 1,54,264.). Thus the cash in hand on 1.04.2008 was ₹ 3,13,345 ( ₹ 4,67,709 - ₹ 1,54,264 ) and the fact is that the assessee had declared ₹ 3,96,814 as income for assessment year 2008-09. In the light of the said documents, we find that the assessee has been able to prove the source of ₹ 1,27,470/- and, therefore, we are inclined to delete the addition sustained by the ld. CIT(A) on this issue. 8. Coming to the next issue i.e. grounds No.11 & 12 is in respect to the confirmation of addition of ₹ 3.12 lakhs on account of accr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... da account No.0099 and 50% of ₹ 8,920/- i.e. ₹ 4,460/- balance as on 1.4.2008 in Bank of Baroda account No.07644). Thus, the aggregate opening balance in bank as on 1.4.2008 was ₹ 1,54,264/-. Therefore, we take note that the assessee had cash in hand in the beginning of the year at ₹ 3,13,345/-. Thus the assessee was having sufficient opening cash in hand before making contribution in his capital account in M/s Harish Hosiery to the tune of ₹ 3.12 lakhs. So the ld. CIT(A)'s reasoning that there was no document in respect to the cash in hand as on 1.4.2008 is erroneous and, therefore, we are inclined to delete the addition of ₹ 3.12 lakhs. 12. Since we have dealt with the issues on merit and deleted the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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