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TMI Blog2018 (3) TMI 1410X X X X Extracts X X X X X X X X Extracts X X X X ..... ing income of Rs. 21,25,283/-. The assessee is a Director in the company i.e., M/s. CPR Capital Services Ltd., and earned income from salary, rental income, income from house property and income from other sources. As per AIR information, there was a cash deposit of Rs. 35,25,000/- in the S.B. A/c maintained with Punjab National Bank in assessment year under appeal. The assessee was asked to file complete bank statement of her S.B. A/c in Punjab National Bank. On perusal of the said bank statement, it was found that during the year there was a cash deposit of Rs. 35,25,000/-. The assessee explained that assessee has withdrawn an equivalent amount from her bank account during assessment year under appeal for a property deal, but, due to some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount was lying idle at the home throughout the year. Initially, no reply was filed by the assessee. The assessee, later on, filed reply and submitted that cash of Rs. 48 lakhs was withdrawn by assessee from her bank account for purchase of property in Hargovind Enclave, Delhi- 92, for a total consideration of Rs. 85 lakhs through a real estate agent. The real estate agent has advised the assessee to keep the cash in hand ready atleast of 50% of the total price of the property. When deal did not materialize, cash was redeposited. The A.O, however, noted that during the year assessee has withdrew total amount of Rs. 99,25,000/- and 50% of the purchase would be Rs. 42,50,000/- but, assessee has made more withdrawals. The assessee acted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny evidence to substantiate the explanation of cash deposits in her bank account were from cash withdrawals. Since, the source of the cash deposit was not explained to the satisfaction of the authorities below and no evidence was filed with regard to purchase of any alleged property by assessee, the Ld. CIT(A) found that assessee failed to explain source of the cash deposit of Rs. 26,25,000/-. The Ld. CIT(A) relied upon decision of the Hon'ble Supreme Court in the case of CIT vs. Durga Prasad More 82 ITR 540 in which it was held that "taxing authorities are permitted to look into the circumstances and apply the test of human probabilities." By applying such test, the Ld. CIT(A) found that the explanation of assessee of withdrawals and redep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. We have considered the rival submissions and material available on record. It is not in dispute that assessee made cash deposits of Rs. 35,25,000/- in her bank account maintained with Punjab National Bank. The assessee has income from salary, house property and income from other sources. The assessee has no business income in assessment year under appeal. The assessee is also not a property dealer. The assessee explained before the authorities below that cash was withdrawn from her bank account to deal in properties. However, assessee did not produce any evidence in support of same, if any, transaction was conducted by assessee dealing in any property. The assessee, thus, failed to explain the source of the cash deposits in the bank ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear that assessee failed to explain the source of the cash deposit in the bank account through any cogent and reliable evidence and surrounding circumstances speak against the assessee. The explanation of assessee has been correctly rejected by the authorities below because there was no explanation to the satisfaction of the authorities below. Learned Counsel for the Assessee merely contended that assessee did not maintain the books of account, therefore, no addition under section 68 of the Act could be made and relied upon the decision of ITAT, Lucknow Bench in the case of ITO vs. Kamal Kumar Mishra (supra). However, Hon'ble Allahabad High Court in the case of CIT vs. Jauharimal Goel (2006) 201 CTR 54 (All.)/(2008) 296 ITR 263 (All.) he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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