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TMI Blog2020 (12) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... Victory Complex, Peda Waltair, Visakhapatnam. Neither the sale agreement was disproved nor the existence of ownership of 6000 sq.ft at Victory Complex was disputed by the AO. Therefore, we do not find any reason to reject the contention of the assessee that he had received on money from late TMV Prasada Rao. Assessee is regularly assessed to wealth tax and as per the wealth tax returns, there was opening cash balance which was not disputed by the AO. The wealth tax returns are available with the AO, therefore, the availability of opening balance also was not disputed, hence the credit required to be given to the assessee, with regard to availability of opening balance. While taxing the deposits AO cannot ignore the withdrawals and opening cash balance available to the assessee and credit needs to be given to the source available from the application of funds. Though there was mismatch in dates with regard to deposits and withdrawals, the entire withdrawals cannot be brushed aside. AO ought to have made cash flow statement with opening cash balance, deposit and withdrawal and given due credit for the available sources. Instead, the AO chosen to tax the entire investments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Rs. Gross total SB A/c No.501000000975 with HDFC 1. Cash deposit 09.07.2011 24,000 2. Cash deposit 17.01.2012 40,000 3. Cash deposit 28.03.2012 5,00,000 TOTAL 5,64,000 5,64,000 SB A/c No.10846459231 with SBI 1. Cash deposit 02.06.2011 9,80,000 TOTAL 9,80,000 9,80,000 HDFC A/c No.00501000179862 1 Cash deposit 19.05.2011 24,96,000 2 Cash deposit 26.05.2011 20,04,000 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30,000 ING Vysya A/c 333010111867 1. Cash Deposit NIL 0 0 GRAND TOTAL 1,76,28,550 3. Against the order of the AO, the assessee went on appeal before the CIT(A) and submitted that the assessee is a wealth tax assessee having opening cash balance of ₹ 59,76,000/-and made withdrawals from the bank account on various dates and having sufficient source to meet the cash deposits. The assessee also explained before the AO as well as the CIT(A) that the source of deposit was receipt of cash from Late Sri TMV Prasada Rao, Vijayawada out of sale consideration agreed at ₹ 2.50 crores for purchase of property i.e. 6000 sft. of built up area in a commercial complex by name Victory Complex, Peda Waltair, Visakhapatnam, jointly owned by Sri Phanendra Babu and his wife Smt.P.Lakshmi, which was received by the assessee during the financial years 2006-07, 2007-08 and 2008-09 and the funds were transferred by Sri Prasad Rao s daughter Ms Indira. The assessee further submitted that the funds of Late Shri TMV Prasad Rao were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f withdrawals made, therefore, the Ld.CIT(A) erred in allowing relief to the assessee. Thus argued that the Ld.CIT(A) erroneously allowed relief, therefore, requested to set aside the order of the Ld.CIT(A) and restore the assessment order. 6. On the other hand, the Ld.AR argued that the assessee s only source of income was house property, i.e. rents collected by the assessee, there was no other source of income. The AO while making addition has not taken any support of Income Tax provisions i.e. either section 68 / 69 to make the additions. By not invoking the provisions itself, the additions made by the AO needs to be deleted. Since the Ld.CIT(A) has examined the source of funds and application of funds in detail, the Ld.AR argued that no interference is called for in the order of the Ld.CIT(A) and requested to uphold the order of the Ld.CIT(A). 7. We have heard both the parties and perused the material placed on record. In this case, the Ld.CIT(A) has examined the issue in great detail with regard to availability of source and application of fund and given relief of ₹ 2,00,28,550/- and confirmed the addition of ₹ 27,42,000/-. For the sake of clarity and conveni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 911010059059097 25.11.2011 100000 2. Axis Bank 911010059059097 25.11.2011 25000 3. Axis Bank 911010059059097 25.11.2011 50000 4. Axis Bank 911010059059097 03.12.2011 10000 5. Axis Bank 911010059059097 03.12.2011 1000000 6. Axis Bank 911010059059097 13.12.2011 500000 7. HDFC Bank 00501000179862 11.04.2011 278000 8. HDFC Bank 00501000179862 09.05.2011 735000 9. HDFC Bank 00501000179862 09.05 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l cash available is near about ₹ 2 crores and thus the entire cash deposits in the bank account stand explained. 6.2.5. As regards the other additions aggregating to ₹ 51,42,000 (22770550 - 1762855O), it is the contention of the appellant that the same have been met out of the cash available on the respective dates. In the absence of a detailed cash flow statement, I am unable to accept the contention of the appellant in toto. However, from the overall cash balance of Rs,2 crores worked out as above, there is a balance of ₹ 2 crores a sum of ₹ 24,00,000 is available after deducting the cash deposits in the bank aggregating to ₹ 1,76,28,550. Therefore, the appellant is entitled for relief to this extent. The balance addition of ₹ 27r42,000 is sustained. 6.2.6. Thus, out of the total addition of ₹ 2.27.70,750 the appellant gets relief of ₹ 2,00,28,550 and the balance addition of ₹ 27,42,000 is sustained. 7.1. From the order of the lower authorities, we find that the AO has taxed the sources and application of funds without giving any credit to the availability of sources. Thus the AO did not appreciate the informati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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