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TMI Blog2018 (12) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... nd deposits are duly reflected in the bank account of the assessee and are verifiable from relevant records.Assessing Officer himself admitted that assessee had sufficient cash balance on each occasion at the time of deposit in her bank account on different dates during the assessment year under consideration - Decided against revenue. - ITA No.215/LKW/2016 - - - Dated:- 30-11-2018 - Shri. T.S. Kapoor, Accountant Member And Shri Partha Sarathi Chaudhury,Judicial Member For the Appellant : Shri C. K. Singh, D.R For the Respondent : Shri D.D. Chopra, Advocate ORDER PER PARTHA SARATHI CHAUDHURY, J.M: This appeal preferred by the Revenue emanates from the order of ld. CIT(A)-I, Lucknow dated 29/1/2016 as per following grounds of appeal:- 1. On the facts and circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of ₹ 1,35,61,000/- failing to appreciate that the assessee could not establish any nexus between the frequent withdrawals and the subsequent deposit. 2. On the facts and circumstances of the case, the Ld. CIT(A) has failed to appreciate that the assessee could not discharge her onus of proving/ establishing the sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt order observed that it is undisputed fact that during the entire year the cash amounting to ₹ 1,35,61,000/- was deposited on different dates in assessee's bank accounts with Union Bank of India, Unnao. As the amount was deposited in cash in her bank accounts, the onus lies upon the assessee to prove the source of the same. A statement showing source of cash was furnished by the assessee in support of her claim. A perusal of the statement furnished by the assessee shows very frequent huge withdrawals in cash from her bank accounts and simultaneously cash amounts are frequently deposited in the bank account. The Assessing Officer observed that statement shows a very peculiar picture wherein assessee makes cash withdrawals from her bank account when she already has sufficient cash balance in her hands out of earlier withdrawals. Part of the cash so generated is retained and the balance amount is deposited to the bank account only to be withdrawn again in quick succession. It was the view of the Assessing Officer that bank statement showing assessee s quick withdrawal and deposit in her bank account is full of suspicious features and it cannot be relied upon as evidence. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... davit furnished by the appellant during the course of appellate proceedings. It is seen from the assessment order that the assessing officer has made the addition of ₹ 1,35,61,000/-, treating the deposits made in her bank account during-the A.Y under consideration as unexplained deposits made on different dates. The Assessing Officer has observed that the appellant has regularly made the withdrawals from her bank account and deposits were also made continuously during the A.Y. under consideration. The Assessing Officer concluded that the appellant did not furnish corroborative evidence in support of her version that the earlier withdrawals made from her bank account were again deposited in her bank account. The AO has also doubted the frequent-withdrawals and deposits made by appellant from her bank account. The assessing officer has also mentioned that the statement through which the assessee sought to explain the cash deposit in her bank account is full of suspicious feature and the AO could not be taken as satisfactory, evidence, of various deposits made by appellant in her bank account. The AO has also mentioned that if the argument of the appellant with regard to the ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under consideration. The AO has himself mentioned in assessment order that the appellant frequently made the withdrawals and deposits in her bank account but he has doubted or raised suspicion in respect of the deposits made out of available Cash with her. 5.2 I found much force in the argument of appellant that the AO's suspicion and doubts are without any basis and evidence. The appellant has also contended that she had discharged her duty to explain the deposits made in her bank account by furnishing the written explanation along with supporting evidences i.e. bank statement, copy of ITR and computation of income not only A.Y. under consideration but A.Y. 2009-10. The appellant has also submitted that she had disclosed substantial income in A.Y. 2009- 10, represented deposits in her and her minor son's Himandri Awasthi alias Rajat. The appellant had surrendered of ₹ 2,64,00,000/- i.e. in the name of appellant, deposit in SB bank account 4400 UBI Unnao amounting to ₹ 1,51,00,000/- and in the name of Himadri Awasthi alias Rajat in S/B account No. 513975 UBI Unnao ₹ 1,13,00,000/- and deposited due tax thereon. The appellant has vehemently argued that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as circulating money in subsequent years including A.Y. under consideration. The AO did not bring any material on record which could prove the destination /utilization of the money which were disclosed in her ITR, were elsewhere rather than transaction reflected in her bank accounts. The revenue cannot justifiably claim to put itself in the arm chair of the businessman or in the position of board of directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. No business man can be compelled to maximize its profit The Income-tax authorities must put themselves in the shoes of the assessee and see how a prudent businessman would act. The authority must not look at the matter from their own view point out of a prudent businessman. Reliance is placed on the decision of SA builders Ltd. vs CIT (2007) 158 Taxman 82 (SC) It has been held by hon'ble Supreme Court that One has to see the transfer of the borrowed funds to a sister concern from the point of view of commercial expediency and not from the point of view whether the amount is advanced for earning profits. 5.4 In view of above discussion, I hol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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