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TMI Blog2020 (5) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, only the peak positive or negative balance occurred in these accounts deserves to be considered as unexplained income of the assessee, because deposits and withdrawals from the same account, though through cross-bearer cheques also According to the assessee, he has availed benefit of cheque discounting and re-circulated this money for commodity trading. Possibility of truth in this allegation cannot be ruled out. It can only be ruled out, had the AO called one of the persons to whom cheques was issued, and inquired who has collected cash from the bank. Had this exercise was done, with regard to one Shri Janardhan who has withdrawn ₹ 2.50 lakhs on 12th June, then the stand of the assessee could be falsified. But no such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in cash on various dates. Similarly, in the second account an amount of ₹ 1,49,179/- was found to be deposited in cash. The ld.AO has directed the assessee to explain source of such investment in the banks. The assessee has prepared a cash flow statement and submitted that there was an opening cash balance of ₹ 4,27,000/-. He has withdrawn various amounts from the bank and re-deposited them. In other words, the stand of the assessee was that these amounts were used by the assessee for the purpose of commodity trading. There were withdrawals and deposits from the accounts, and if both are totaled up there is no unexplained deposit. The ld.AO has called for details from ICICI Bank with regard to the account no.029401512701. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eques were issued from this very account. He drew our attention towards a cheque bearing no.432603 dated 4th June of SMC Trading of ₹ 50,000/-. It has been credited in this account. Therefore, Shri Divetia s emphasis is that there were no other sources of income with the assessee, from where he could deposit this cash. It is a circulation of money from this very account. 5. The ld.DR, on the other hand, contended that both the revenue authorities concurrently recorded a finding that amounts, which have been deposited by the assessee withdrawn from this account in cash, was never travelled back to him. He has issued cross bearer cheques, and those cheques have been encashed by the person in whose favour such cheques were issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt on account of other reasons, then he would not have made payment every time at a fixed amount of ₹ 49,000/-. The AO in the assessment order, though noticed the details of alleged cheque payments, and in some of payments, amounts were shown at ₹ 90,000/-, ₹ 1,00,000/-, but perusal of the bank statement at page no.17 and 18 would reveal that certain debit entries are with regard to contract with SMC Comtrade, through which the assessee has done commodity trading. These were payments made to this concern also. At this stage I deem it appropriate to take note of the summary of cash flow prepared by the assessee, which is available on page no.22 of paper book, and it reads as under: Vikas Thakur Summary Cash Flo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thdrawn periodically. Similar amounts have been deposited at roughly ₹ 49,000/- per transaction. It appears that these amounts must have been used by the assessee for trading activities, and therefore, only the peak positive or negative balance occurred in these accounts deserves to be considered as unexplained income of the assessee, because deposits and withdrawals from the same account, though through cross-bearer cheques also. But according to the assessee, he has availed benefit of cheque discounting and re-circulated this money for commodity trading. Possibility of truth in this allegation cannot be ruled out. It can only be ruled out, had the AO called one of the persons to whom cheques was issued, and inquired who has collecte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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