9911796707
TMI Blog2018 (1) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... tilized by the appellant for any other purposes and merely on surmises and conjectures and suspicion the evidence which has been submitted by the appellant cannot be rejected. - Decided against revenue - ITA No. 285/Lkw/2016 - - - Dated:- 17-1-2018 - Shri T. S. Kapoor, Accountant Member And Shri Partha Sarathi Chaudhury, Judicial Member Appellant by Smt. Alka Singh, D. R. Respondent by Shri J. J. Mehrotra, C.A. Shri D. A. Mehrotra, Advocate ORDER Per T. S. Kapoor, A. M. This is an appeal filed by the Revenue against the order of CIT(A) dated 19/02/2016. The grounds of appeal taken by the Revenue are reproduced below: 1. On the facts and circumstances of the case, the Ld. CIT(A) has erred in law in allowing entire relief of ₹ 1,43,46,500/- to the assessee on the issue of unexplained cash deposits without appreciating that the cash flow statement submitted by the assessee simply justified the cash inflow and cash outflow but did not corroborate that such credits in bank accounts namely State Bank of India, Oriental Bank of India, Axis Bank Ltd. Dhanlaxmi Bank and Bank of Baroda had actually been made on the relevant dates out of the frequent withdr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 4. We have heard the rival parties and have gone through the material placed on record. It is an undisputed fact that the assessment was completed u/s 144 of the Act. It is also undisputed fact that the assessee had filed complete cash flow statement. This fact has been mentioned by the Assessing Officer in his order at pages 3 and 4 however, on the basis of frequent huge withdrawal from the bank and simultaneously huge cash deposit in the bank, created doubt in his mind and he held that it is not understood as to why the cash amounts were required to be withdrawn when the cash out of earlier withdrawals was available and as to why the cash was deposited again in the bank account. He further held that if the argument of the assessee with regard to the availability of funds after making withdrawals from bank accounts was to be accepted to exclude the possibility of introduction of unexplained money as cash deposit in his bank accounts, then it has to be held that whosoever is having sufficient cash with him, then that person will not indulge into tax evasion or avoidance. He further held that mere furnishing of details of availability of funds with the assessee was not enough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als and deposits are mysterious and the statement through which the assessee's seeks to explain the source of cash deposits in his bank account is full of suspicious features and it cannot be relied upon as evidence. He has further observed that mere availability of funds with the assessee is not enough to prove the source of cash deposits and it cannot absolve assessee from discharging its burden of proving source of cash deposits as there was a possibility that the cash withdrawn by the assessee might have been utilized towards construction of house property and the cash was deposited from his undisclosed money. With these observations the Assessing Officer has proceeded to treat the amount of cash deposit of ₹ 1,43,46,500/- as undisclosed income of the appellant and has added the same. During the course of the assessment proceedings detailed submissions were filed by the Counsel of the appellant. It was explained that the main source of income of the assessee was on account of service charges received from generator and maintenance of building which were duly supported by various agreements entered into with various tenants. On perusal of the computat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer in the remand proceedings has further observed as follows: The additional evidences submitted by the assessee may be examined in light of the above facts regarding there admissibility in view of Rule 46A of IT rules, specially in view of the fact that at the time of assessment several opportunities were given to the assessee to produce books of accounts which were not complied with and the assessee knowing that non compliance may invite adverse inference against him. In the remand report filed by the Assessing Officer shows that the cash book which was filed is an additional evidence before me was also produced before him and the appellant has explained the availability of cash/funds to prove source of cash deposits. Thus, it is apparent that the source and funds of cash deposits stand proved by the appellant with reference to the availability of cash in hand. In response to the remand report the appellant filed reply dated 08.02.2016 which was followed by reply dated 11.02.2016. Along with reply dated 11.02.2016, besides cash book which was filed by the appellant and produced before the Assessing officer in the remand proceedings, the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
