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TMI Blog2018 (1) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case, the Ld, CIT(A) has failed to examine whether the additional evidence could have been admitted in view of Rule 46A of IT Rules especially in view of the fact that more than adequate opportunities were provided to the assessee during the assessment proceedings." 2. At the outset, Learned D. R. submitted that assessee had deposited huge cash in his bank account for which Assessing Officer had made addition and learned CIT(A), after accepting additional evidence, has allowed relief to the assessee. It was submitted that a number of opportunities were given to the assessee however, the assessee did not cooperate with the proceedings and therefore, assessment was completed u/s 144 of the I.T. Act and therefore, the admission of additional evidence was not warranted. As regards merits of the case, Learned D. R. submitted that the assessee had huge cash in hand and therefore, withdrawal from banks was not as per human probabilities. It was submitted that learned CIT(A) has not appreciated the facts of the case and mere furnishing of cash flow statement showing availability of cash does not itself prove that assessee had utilized same cash into his bank account which was wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer, it is apparent that Assessing Officer just disbelieved the cash deposits and cash withdrawal on the basis of surmises and conjectures. Nowhere he doubted the actual withdrawal and actual deposits. He merely held that is an unusual phenomenon to make withdrawal from the bank and deposit into the bank. Learned CIT(A) has recorded complete and detailed findings and after obtaining remand report from the Assessing Officer has allowed relief to the assessee by holding as under: "In these grounds of appeal the appellant has objected to addition of Rs. 1,43,46,500/- made by the assessing officer by treating the cash deposited in the bank accounts as unexplained and adding the same as income from undisclosed sources. The AO in the original assessment order has observed that as per AIR information cash deposited by the appellant was found in the following bank accounts:- 1. Dhanlaxmi Bank Limited 81,50,000/- 2. State Bank of India 30,13,000/- 1,11,63,000/- During the course of the assessment proceedings the appellant submitted copy of all the banks accounts and on perusal of which the assessing officer found that cash was also deposited in the Ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prehension with reference to having any undisclosed income in the hands of the appellant was misplaced and misconceived and was only on account of wishful thinking of the assessing officer. It is further argued that the entire observations of the Assessing Officer were merely on surmises and conjectures and based on wishful thinking only without any material on record to disbelieve the averment of the material on record to disbelieve the averment of the appellant and the fact that the cash was available with him and source of which was duly filed before the Assessing Officer. The statement which was filed by the appellant finds place at page 17 of the compilation submitted by the appellant. The appellant also filed a copy of the cash book of personal set of the appellant and copies of bank statements in support of his claim that cash was duly available with the appellant at the time of deposit thereof in the bank accounts. The paper book filed by the appellant was forwarded to the assessing officer and the assessing officer has submitted his remand report as per provisions of 250(4) of the Income-tax Act. In para 2 of the remand report AO has extracted the observations mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ace at page 17 of the compilation. On perusal of the aforesaid chart also it is observed that the appellant had sufficient cash balance available with him before deposit in the bank accounts of the cash by him meaning thereby that the appellant had sufficient cash available so as to fund the deposit of cash made in the bank accounts. The AO in the original assessment order as well as in the remand order has observed that mere furnishing details of availability of funds with the assessee is not enough to prove the source over cash deposit and it cannot absolve the assessee from discharging his burden to prove the source of cash deposits and the assessee has failed to substantiate that the amount withdrawn from one bank was subsequently deposits by him in the same bank or some other bank. I fail to appreciate the observations of the AO in this regard. Whether the assessee is supposed to keep track of the number of respective notes which were received by him when the cash was withdrawn by him and get it tallied with the cash deposit which he is making in the same bank account or other bank account what is to be seen is as to whether there was sufficient cash available with th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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