9911796707
TMI Blog2010 (5) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... erved by the Assessing Officer that under CASS based on AIR information, the assessee has deposited cash in his saving bank account to the tune of ₹ 27,55,000/-. Accordingly the assessee was asked to furnish the source of cash deposits in the bank account with supporting evidences in respect of claim made in this regard. In response the assessee's representative submitted daily cash summary indicating the dates of deposits in bank and withdrawals from the bank. In respect of frequent cash deposits and withdrawals, the assessee vide written submission dated 11.12.2007 submitted as under (extracted from para-2 of assessment order) : - This has reference to your query as to why there are several cash deposits and withdrawals to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk account as unexplained cash deposits in the hands of the assessee and added to the income of the assessee and accordingly completed the assessment at an income of ₹ 28,52,120/- vide order dated 31.12.2007 passed u/s.143(3) of the Income tax Act, 1961(the Act). 3. On appeal, before the ld. CIT(A) the assessee contended that [extracted from para-4 of the order of the ld. CIT(A)] as under : The appellant in appeal stated that he had filed a daily cash summary for the period 01.04.2004 to 31.03.2005 which reflects each of the cash deposits made in the bank account. The cash deposits were out of opening cash in hand and withdrawals made during the year, salary earnings, commission income and withdrawals from partnership firm. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee's submission and other material available on record including the assessee's bank account observed and held as under : .....The appellant also failed to explain the source of opening balance inspite of specifically requesting for it by letter dated 25.11.2008. In view of all these, none of the explanation offered by the appellant is acceptable. Therefore, the only option left is to treat the withdrawals and deposits as unexplained. There is a case, as the Assessing Officer has done, to treat all the deposits as unexplained and assess it as unexplained income. But to be fair and just, it is better to treat the peak of the deposits and withdrawals as the unexplained income. This is because there is a possibility that at le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t it is out of bank withdrawals of the earlier year. He further submits that bank withdrawals were made for purchase of property in Gujarat, however, the deal could not be finalised therefore, the cash withdrawals from the banks were deposited in the bank account and in support the reliance was also placed on the confirmation letter from Shri Viral Thakkar appearing at page-12 of assessee's paper book. He therefore, submits that the addition made by the Assessing Officer and sustained by the ld. CIT(A) be deleted. 7. On the other hand the ld. DR supports the order of the Assessing Officer and the ld. CIT(A). 8. We have carefully considered the submissions of the rival parties and perused the material available on record. We find t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 27,55,000/-. 9. We further find that even at this stage, the ld. Counsel for the assessee while submitting that the opening cash balance of ₹ 6,85,325/- is out of previous withdrawals from the bank accounts has failed to file any supporting evidence. Under these circumstances and in the absence of any material placed on record by the ld. Counsel for the assessee to prove the opening cash balance of ₹ 6,85,325/- and the nexus of withdrawals and deposits in the bank account, we after rejecting the working of peak of cash balance adopted by the ld. CIT(A), worked out unexplained cash deposits with the bank as under:- Date Dr. Amount(Rs.) Date Cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.7.04 1,00,000 12.7.04 1,00,000 Total 11,80,000 15,95,000 4,15,000 6.9.04 20,000 6.10.04 2,00,000 4.10.04 50,000 Total 70,000 2,00,000 1,30,000 14.10.04 60,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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