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TMI Blog2019 (3) TMI 1855X X X X Extracts X X X X X X X X Extracts X X X X ..... facts, therefore, same are heard together and have been disposed of by way of this consolidated order. 2. In the case of Shri Nand Kumar Taneja, assessee has challenged addition of Rs. 24,72,000/- made u/s 69A; and in the case of Nita Taneja, she has challenged similar addition of Rs. 17,45,000/-. Both the assesses are individual and senior citizen aged about 70 years and were regularly assessed to tax, on income from salary, income from house property and interest income. Shri Nand Kumar Taneja had filed his return of income on 9.7.2016 declaring total income of Rs. 10,22,820/-; and Smt. Nita Taneja filed his return of income of Rs. 19,20,000/- her return filed on 30.4.2016. Both the cases were selected for 'Limited Scrutiny' for the fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly in the case of Smt. Nita Taneja, cash in hand position was given as under :- F.Y Opening cash Cash withdrawal Cash deposited Cash expenditures Closing cash in hand Increase in cash in hand 2013-14 310924 987000 1052000 120000 125924 -185000 2014-15 r125924 2196000 253000 198000 1870924 1745000 2015-16 1870924 2121500 591550 204000 3196874 1325950 3.2 Apart from that, details of opening cash in hand as on 1.4.2014 and closing cash in hand as on 31st March, 2015 was also given. Ld. AO instead of examining the cash disclosed by the assessee, observed that, why anyone will keep so much cash with him/her; and as a senior citizen it would be prudent for them to keep money at bank rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of accounts u/s 69A. The deeming fiction u/s 69A can be invoked, where in any financial year assessee is found to be the owner of any money, bullion, jewellery or other valuable articles and such money, bullion, jewellery or valuable articles is not recorded in the books of accounts and the source is not explained by the assessee. Here in this case, there is no dispute with regard to the fact that the assessee has been filing the income tax return along with the balance sheets, wherein source of income and cash has been disclosed and recorded. Hence in such a situation it is unfathomable as how provision of 69A can be invoked. For instance, right from the financial year 2013-14 to 2015-16, the balance sheets of the respective assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9A is applicable. Because the section can only be invoked where in any financial year the assessee is found to be the owner of any money, etc., which has not been recorded in the books of accounts and assessee offers no explanation. Here in these cases, Assessee's cash in hand duly stands recorded and source has been explained from the income deposited in the bank account and withdrawal, then in my opinion deeming provision of section 69A cannot be invoked. The reasoning given by the AO and Ld. CIT (A) is vague and based on surmise as to what a prudent person should have done. Once assessee has explained that being of senior citizen they have maintained such liquidity of cash out of their own disclosed income with them for certain contingen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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