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TMI Blog2019 (2) TMI 1794X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus when the assessee in the statement recorded at the time of search had explained the source of withdrawal of cash from his bank account and subsequently, the depositing in his bank account coupled with the confirmations of Mr. and Mrs. Gandhi, we are of the view that assessee has fully explained the source of cash deposits. No additions on account of unexplained cash deposit and unproved expenditure on account of stamp duty can be made in the present case. We therefore direct its deletion. Grounds of the assessee are allowed. - ITA No.322/PUN/2016 (Assessment year : 2011-12) - - - Dated:- 19-2-2019 - MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM Assessee by: Shri Pramod Shingte. Revenue by: Shri Avadesh Kumar. ORDER PER ANIL CHATURVEDI, AM : 1. This appeal filed by assessee is emanating out of the order of Commissioner of Income Tax (Appeals) 12, Pune dated 03.12.2015 for the assessment year 2011-12. 2. The relevant facts as culled out from the material on record are as under :- Assessee is an individual stated to be having income from business, capital gains and other sources. Assessee electronically filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heques of ICICI Bank for purchasing the land. The source of which was stated to be out of amounts taken from his father and from his own savings. It was further stated by the assessee that he made cash payment of ₹ 20 lakhs on 05.04.2010 which was received back when the final payment was made by cheque. AO noted that purchase deed for the land which was executed on 17.04.2010 showed the payment of ₹ 20 lakh each by way of cheques but the alleged cash payment of ₹ 20 lakh made by assessee was not reflected in the purchase deed. The submission of the assessee that ₹ 20 lakhs that was paid by him in cash to Mr. Sachin Gandhi Mrs. Meera Gandhi was subsequently refunded back to the assessee on receipt of full agreed consideration of ₹ 40 lacs by cheque and out of the cash refunded amount of ₹ 20 lacs after retaining ₹ 2.50 lacs for stamp duty, the balance cash amount of ₹ 17.50 lacs was deposited with his ICICI Bank account was not found acceptable to the AO. AO concluded that assessee has failed to prove his claim that the amount of ₹ 20 lakhs was refunded by the vendors Shri Sachin C. Gandhi and Mrs. Meera S. Gandhi. AO therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that at the time of search and seizure action on 20.04.2010 at the residence of assessee, two cash vouchers dt.05.04.2010 evidencing cash payment of ₹ 10 lakhs each to Mr. Sachin Gandhi and Mrs. Meera Gandhi for purchase of land at Nashik were found. He submitted that since the aforesaid cash payments did not appear in the final sale deed, a doubt about it being on-money was expressed. Assessee explained the source for such cash payment to be withdrawn from his ICICI Bank account. It was further submitted that the cash payments made were refunded by the vendors after receipt of cheque payments which was noted in the final sale deed and in support of refund of ₹ 20 lacs it was pointed out that out of the cash refund of ₹ 20 lacs after retaining cash of ₹ 2.50 lacs for stamp duty, registration fee and other charges, the balance amount of ₹ 17.50 lacs was deposited in the Bank account. In the absence of source for cash deposit of ₹ 17.50 lakhs in his ICICI Bank account and retaining cash of ₹ 2.50 lakhs for payment of stamp duty, registration fee and other charges, the addition of the aforesaid amounts were made as unexplained cash c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that since assessee did not have time to make the demand draft for the payment, he made the payment in cash after withdrawing it from his ICICI Bank account. Later on, Mr. and Mrs. Gandhi on receipt of the full agreed consideration of ₹ 40 lacs thru cheque, the assessee was refunded the cash. In support of assessee s submission of the amount being withdrawn from his ICICI bank account, Ld.A.R. pointed to the Bank statement of assessee which is placed at page 15 of the paper book. He also pointed to the statement of Mr. Sachin C. Gandhi which was recorded u/s 131 of the Act on 17.05.2010 wherein he has acknowledged the receipt of amount to be refundable deposit. Further, in support of his contention of depositing the cash back after retaining cash of ₹ 2,50,000/-, he again pointed to the assessee s bank statement maintained with ICICI Bank, which is placed at page 15 of the Paper Book. He therefore submitted that since assessee has explained the source of cash, no addition is called for in the present case. Ld.D.R. on the other hand, supported the order of lower authorities. 6. We have heard the rival submissions and perused the material on record. The issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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