2011 (6) TMI 988

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..... wards alleged unexplained cash deposits in bank account. The submissions made and the decisions cited have also not been appreciated. 3. Briefly stated, the facts of the case are that the assessee was found to have made cash deposits totaling ₹ 3,15,000/- in her bank account during the relevant previous year, each deposit being of ₹ 45,000/-. When asked to state the source of the cash deposits, the assessee submitted that the same were out of her past savings out of her income of the earlier years and that she was regularly filing her returns for the past twelve years. She stated that the money was kept in a Golak in her house to keep it aside from her other family members. She said that since it was her hard earned money sh .....

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..... ₹ 42,175/- Total ₹ 117,175 In light of the aforesaid position of cash availability, the cash deposits of the assessee in the bank are held to be unexplained to the extent of ₹ 1,97,825/-. Addition to this extent is sustained out of the addition of ₹ 3,15,000/- made by the A.O. Assessee, therefore, gets part relief in respect of ground No.2 of appeal. Ground No.1 is admittedly general in nature. 5. We have heard the rival submissions and have also perused the material available on record. Shri Sandeep Vijh, C.A., the learned counsel for the assessee, submitted that during the year there was cash deposits of ₹ 3,15,000/- in the savings bank account .....

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..... to husband for encashment only and the same was ultimately available as cash in hand. Shri Sandeep Vijh, C.A., the learned counsel for the assessee, also submitted that no defect in cash flow statement for any subsequent year has been pointed out. After considering the above statement of the learned counsel for the assessee, the learned CIT(A) allowed the benefit of opening cash available at the beginning of the year at ₹ 75,000/- and gave further benefit of net income of ₹ 42,175/- (₹ 85,175/- declared income for the assessment year 2006-07 (minus) withdrawals of ₹ 42,000/- as per cash flow statement). In our view, there is no reason as to why similar benefit of cash accumulation should not be allowed for the five .....

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