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TMI Blog2020 (7) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... o is employed with Eastern Coalfields Ltd. No return of income for the year under consideration was filed by him either within the time specified u/s 139(1) of the Income Tax Act, 1961 or section 139(4) of the Income Tax Act, 1961. On the basis of information received by him regarding the cash deposits of Rs. 13,81,000/- found to be made by the assessee in his savings bank account with Allhabad Bank, Ukhra Branch during the year under consideration, a notice u/s 148 was issued by the AO to the assessee on 29.03.2018. No return in response to the said notice was initially filed by the assessee. The AO issued letters u/s 133(6) of the Act to M/s. Eastern Coalfields Ltd., the concerned banks where the assessee had maintained his accounts durin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the explanation offered by the assesssee was neither valid nor logical and treating the cash deposits aggregating to Rs. 15,13,000/- found to be made in the bank accounts of the assessee as unexplained, addition to that extent was made by him to the total income of the assessee in the assessment completed u/s 143(3)/147 of the Act vide an order dated 14.12.2018. 3. Against the order passed by the AO u/s 143(3)/147 of the Act, an appeal was preferred by the assessee before the Ld. CIT(A) and the explanation offered before the AO was reiterated on behalf of the assessee before the Ld. CIT(A) in support of his case that the addition made by the AO by treating the cash deposits found to be made in the bank accounts of the assessee by trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the impugned bank accounts. The appellant has three bank accounts. Two of his bank accounts, one at SBI and the other at Allahabad Bank have already been highlighted above. The third account is with PNB in which his salary is credited. The Id. AO has not taken the said bank account for calculating the undisclosed income as the said bank account is disclosed and the sources of deposits in the same are also disclosed. Therefore, the entries and transactions recorded in PNB are not taken into consideration. 8.1 The transactions recorded in the appellant's accounts with SBI and Allahabad Bank have been examined. It is observed that there is no inter relation between the withdrawal from one bank account and deposit in the other. The amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the appellant's account with the SBI. The remittances also are towards repayment of loans and towards FDs. I find that there is no inter-bank transfer or deposits in this account as well. The remittances are to specified accounts or destinations and they have never reached the appellant's account with the SBI. In fact, there is no apparent instance of any intra-bank withdrawal and deposit. 8.4 in view of the above facts, I am of the view that this is not a case which merits determination of the peak of credits. The cases relied upon by the appellant are factually different from the present case in as much as in those cases there were instances of multiple withdrawal and redeposits and of inter-bank transfers but in the present case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he relevant two bank accounts, but this factual position was completely ignored by the Assessing Officer as well as by the Ld. CIT(A). He has contended that keeping in view all these cash withdrawals and deposits reflected in in the relevant bank accounts, the addition should have been restricted by the authorities below to the extent of peak credits appearing in the said bank accounts and there was no justification in adding the entire amount of cash deposits found to be made in the bank accounts of the assessee thereby ignoring completely the cash withdrawals made from time to time which were available to the assessee to explain the source of corresponding cash deposits. 6. The Ld. DR, on the other hand, strongly relied on the orders of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk respectively. At the same time, there were other transactions involving debits and credits to these three bank accounts of the assessee including the impugned cash deposits of Rs. 15,13,000/-. As far as the transactions involving debits and credits arising from bank transfers are concerned, neither the AO nor the Ld. CIT(A) has raised any dispute about the same. They have treated only the cash deposits aggregating to Rs. 15,13,000/- reflected in the bank accounts of the assessee as unexplained on the ground that the assessee failed to explain the source of the same. As rightly contended on behalf of the assessee before the authorities below as well as before the Tribunal, there were cash withdrawals made by the assessee from his bank acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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