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TMI Blog2021 (1) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... ELD THAT:- As per the summary of cash deposit in these bank accounts, we are satisfied that the total cash deposits in the bank account of the assessee is explained and under these facts, on factual aspect also, we find that this addition is not justified. - ITA No.1343/Bang/2017 (Assessment Year : 2012-13) - - - Dated:- 16-10-2020 - SHRI A. K. GARODIA, ACCOUNTANT MEMBER AND SMT BEENA PILLAI, JUDICIAL MEMBER Assessee by: Shri. G. S. Prashanth, CA Revenue by: Shri. Priyadarshi Mishra, JCIT (DR)(ITAT), Bengaluru ORDER Per A.K. Garodia, Accountant Member This appeal is filed by the assessee and the same is directed against the order of learned CIT(A)-6, Bengaluru, dated 31.01.2017 for Assessment Year 2012-13. 2. The grounds raised by the assessee are as under: 1. The learned assessing officer had erred in passing order in the manner passed by him and the learned Commissioner of Income-tax (Appeals) has erred in confirming the same. The impugned order having been passed in violation of law and in violation of principles of natural justice is liable to be quashed. 2.1 In any case the assessing officer had erred in resorting to estimate the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 139. 4. This appeal was filed by the assessee after a delay of 73 days and the assessee has moved an application for condonation of delay along with an affidavit of the assessee and it is submitted in this application that during the relevant period, the assessee was unwell and was suffering from viral fever and due to his illness, the assessee could not file the appeal in time. The assessee has also submitted a medical certificate in this regard. In the course of hearing, it was submitted by learned AR of the assessee that under these facts, this delay should be condoned and the appeal of the assessee should be admitted. Learned DR of the Revenue opposed to the condonation of the delay but still in the facts of the present case, we feel it proper to condone the delay and admit the appeal. We order accordingly and the delay is condoned and the appeal is admitted. 5. In course of hearing on merit of the appeal, it was submitted by learned AR of the assessee that as per ground Nos.2.1 to 2.4, this is the grievance of the assessee that the AO was not justified in estimating the income of the assessee at ₹ 60 lakhs as against the declared business income of ₹ 31,14,65 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned CIT(A) and AO on this issue and accordingly, ground Nos.2.1 to 2.4 raised before the Tribunal are rejected. 8. The next issue i.e., ground Nos.3.1 to 3.3 is in respect of addition made by the AO of ₹ 107.27 lakhs by alleging that the cash deposit in the Bank account of the assessee of much amount is unexplained cash deposit. Learned AR of the assessee submitted that both the Additional grounds raised by the assessee are also in respect of this addition of ₹ 107.27 lakhs being disputed as per these grounds No. 3.1 to 3.3. He submitted that reliance is already placed on the judgment of Hon ble Karnataka High Court rendered in the case of CIT vs. Bahubali Neminath Muttin as reported in 72 Taxman.com 139, copy available on pages 1 to 7 of the Case Law Compilation. In particular, our attention was drawn to Para 23 24 of this judgment and it was submitted that as per Para 23, it was held that if the books of accounts of the assessee are rejected, the same books of accounts cannot be relied upon for making another addition on account of trade creditors or arriving at the closing stock. He submitted that by the same logic, the same rejected books of accounts cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on page 6 of the paper book. Hence, we accept that both these bank accounts are disclosed bank accounts. 10. It was his submission that since, both these accounts are disclosed bank accounts and entire cash deposit is in these two accounts only, the entire cash deposit in these two banks should be accepted as explained. At this juncture, the Bench directed the learned AR of the assessee to submit the details of total cash deposit in these two bank accounts as per the bank statements of these two banks along with cash withdrawal from these bank accounts to examine this claim of the assessee that the entire cash deposit of ₹ 107.27 lakhs is only in these two disclosed bank accounts. Accordingly, learned AR of the assessee has submitted such working and as per these workings, there is cash withdrawal during the Financial Year 2011-12 of ₹ 78,57,380/- from these two bank accounts and there is cash deposits in these two bank accounts for Financial Year 2011-12 of ₹ 107.27 lakhs. It has also been submitted that out of cash deposits in these two banks of ₹ 107.27 lakhs, there is sales turnover in cash of ₹ 61,84,302/- and there is balance cash deposit of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nother addition on account of trade creditors or arriving at the closing stock. We find force in this argument of the learned AR of the assessee that by the same logic, in the present case also, the same rejected books of accounts cannot be relied upon for making this addition of ₹ 107.27 lakhs by alleging that the cash deposit in the Bank account of the assessee of this much amount is unexplained cash deposit. Respectfully following this judgment, we delete this addition. 13. For the sake of completeness, we examine and decide about this addition on factual aspect also. We find that there is no dispute that the books of accounts of the assessee are audited books and as per audited balance sheet on page 4 of the Paper Book, there is cash at bank of ₹ 5,31,699/- as on 31.03.2012 and there is cash in hand on this date of ₹ 43,355/-. On page 6 of the Paper Book is the summary of this cash at bank available on 31.03.2012 of ₹ 5,31,699/- and as per the same, there was a balance of ₹ 5,905/- with Dhanalakshmi Bank Ltd. Account No.03734 and a balance of ₹ 5,22,768 with Dhanalakshmi Bank Ltd. Account No.01112 and there was a balance of ₹ 3026/- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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