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TMI Blog2019 (9) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... nnum - in view of the overall facts and circumstances of the case, we find that the estimation of household expenditure is on a higher side and it would be fair and reasonable to restrict the same to ₹ 2 lacs per annum as against ₹ 5 lacs per annum. Regarding the contention of the AR that only withdrawals for last 4 years have been considered by the AO and not the earlier years withdrawals, we are unable to accede to the said contention of the ld AR as the lower authorities have been fair and reasonable to consider the availability of cash in hand out of withdrawals from last four years and it would be highly unrealistic that cash withdrawals made in years prior to last four years are kept by the assessee as cash in hand given that the assessee is a merchant navy official mostly on high seas and his expenses being met by the employer and thus not having the necessity to hold cash in hand. Further, he maintains account with banks and thus having regular banking facility and the cash can be withdrawn as and when needed by his family which in any case, as per assessee s own submission doesn t have very high cash requirement for meeting household expenditure. Aailabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn on 28.09.2013 declaring income of ₹ 5,75,480/- in the status of Resident but Not Ordinary Resident. 2.1 The AO observed that during the year, the assessee has deposited cash of ₹ 25,20,000/- in Allahabad Bank Account, ₹ 46 lakhs in his PNB Account, ₹ 10 lakhs in BOI Account, ₹ 10,56,000/- in BOB Account and ₹ 2,33,40,000/- in Dena Bank Account. Apart from this, assessee has purchased a property for ₹ 1,70,00,000/- and sold a property for ₹ 22,96,692/- and required the assessee to explain the source thereof. 2.2 The assessee vide letter dated 22.01.2016 and undated letter (reproduced at pages 2 3 of assessment order) explained the source of deposit of cash and purchase sale of immovable property. He also furnished his individual cash book where the opening cash in hand is claimed at ₹ 1,22,50,000/-. The source of this cash was explained to be out of the salary income of ₹ 2,73,97,604/- earned between 1995 to 2012 of which ₹ 1,23,68,575/- was withdrawn from the bank accounts between 2004 to 2012. It was further pointed out that the withdrawal from bank during the last four ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22,50,000/- claimed by the assessee. It may be noted that the family of the assessee consists of himself, his wife, one son and one daughter. The assessee for most of the time remained on High seas and his expenses were borne by the employer. The assessee has his own house where his wife and children were staying. The family of the assessee maintains a normal living. The daughter of the assessee joined MBBS course in June, 2012. The son was studying engineering in JNNIT, Jaipur. Therefore, withdrawal of ₹ 5 lakh per annum assumed by the AO in last four years to work out the savings out of the withdrawals made in these years is highly excessive and unreasonable. During this period of four years, in view of the facts stated above, only a reasonable withdrawal could be considered at ₹ 6 lakhs as against ₹ 20 lakhs assumed by the AO. Therefore, addition to the extent of ₹ 14 lakhs out of the addition of ₹ 61,32,575/- is unjustified. 2.6 It was further submitted by the ld AR that the assessee has withdrawn ₹ 1,23,68,575/- from his bank account between 2004 to 2012 out of which withdrawal of ₹ 81,17,425/- was in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned above in the past 4 years in cash would have to be used for such expenses. He further held that explanation that such amounts were kept at home is practically untrue when he had several bank accounts could easily have put the funds in a fixed deposit for later investment as planned claimed by the assessee. Accordingly, the opening cash balance claimed as per a self generated cash book was reworked by him as under:- Opening balance shown ₹ 1, 22, 50,000/- Withdrawals in past 4 years 81, 17,425/- Less household expenses @ ₹ 5 lakhs per year 20, 00,000/- Available cash balance (opening) 61, 17,425/- If this amount was treated as explained out of the above opening cash balance of ₹ 12250000/- as on 01.04.2012 to explain part of the cash deposits in the banks, still ₹ 6132575/- remained unexplained and was therefore added to the assessee's income as income from undisclosed sources. In the course of the appellate proceedings, the arguments advanced by the A/R of the appellant through his written submissions are prac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 15 years or so was available with the appellant as opening balance. Then what was the purpose of withdrawing it? In the absence of any detail of expenses incurred by the assessee in this period the cash opening balance has no relevance and the entire withdrawal cannot be said to have been available for being re-deposited. Moreover the withdrawals of 4 years being available as cash in hand are not probable. The assessee therefore has not been able to link the cash withdrawn from the bank with cash deposit. 4. We have heard the rival contentions and perused the material available on record. It is noted that during the last four years, the assessee has withdrawn ₹ 81,17,425 from his bank account which has been claimed in support of opening cash in hand. The AO has however estimated household expenses at ₹ 5 lacs per annum totaling to ₹ 20 lacs and the balance ₹ 61,17,425 has been accepted as fair and reasonable towards the source of cash in hand. Therefore, the differential amount of ₹ 61,32,575 has been added and brought to tax as unexplained in the hands of the assessee. Regarding estimation of ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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