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TMI Blog2021 (4) TMI 483X X X X Extracts X X X X X X X X Extracts X X X X ..... ich has been transferred from current account to his savings bank account which was duly appearing in cash book, explains the entire source. Therefore, it cannot be held that the cash deposits remain unexplained. In the light of the aforesaid explanation as submitted by the ld. counsel duly corroborated by the evidence on record, we hold that the entire cash deposits of ₹ 52 lac stands explained. Addition on household expenses - CIT(A) has confirmed the addition on the ground that assessee has not shown household expenses - HELD THAT:- We find that the assessee had shown household expenses and cash drawings from savings bank account at ₹ 60,000/- and approximately ₹ 35,000/- for LIC payments. Apart from that, assessee has also explained that he was staying with his father and majority of the household expenses was borne out by him. Without there any specific finding or material, the addition based on pure surmises and presumption cannot be sustained. Accordingly, the same is directed to be deleted. Undisclosed payment of rent - Difference as per the amount mentioned in rent agreement and shown in the P L account - HELD THAT:- It is clear from the rent ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eous items. AIR information was received that assessee has purchased immovable property for consideration of ₹ 4.60 crores and assessee was asked to furnish details of payment and its source with evidence. The assessee in reply submitted that it has purchased property along with M/s. Glaze Trading India (P) Ltd. for a consideration of ₹ 4.60 crores in which assessee is having only 25% share. The copy of sale deed dated 15.12.2011was also placed on record. Regarding the source, the assessee submitted that he has made drawing of ₹ 110,84,978/- from the current account of M/s. KNT Overseas, his proprietorship concern, which was subsequently transferred to his Savings Bank Account from where the payment has been made. Ld. Assessing Officer observed that there are cash deposits for sums aggregating to ₹ 52,75,000/-. As per the Assessing Officer, the assessee could give proper explanation for the source of cash deposits. However, he acknowledged from the bank account entries that the assessee has deposited the cash in current account and transferred the amount to his Savings Bank Account for the purpose of purchasing of property, however, he held that the source s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh book audited and maintained in the regular course of business. The books of account were produced before the assessing officer and examined. After examination the assessing officer enquired about several details and all such details filed, examined and placed on record as is evident from the assessment order itself. The, Assessing officer did not find any defect or discrepancy of any kind or of any nature and therefore accepted the books of account and also the book results. No proviso to section 145 has been applied. We are now again enclosing a copy of cash book which is an evidence and explanation to the source of deposit in the bank. Hence the source of deposit in the ban explained and the addition may kindly be deleted. 2. Another addition has been made on account of no withdrawal for household expenses. In the absence of any details such expenses are estimated at ₹ 1,20,000/- and added to the total income. But this is unwarranted since the assessee lives with his father who is responsible for meeting the household expenses. Hence this addition may also be deleted. 3. An addition of ₹ 12,00,000 has also been made on account of rent difference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... withdrawn from the bank or received from M/s. PAM Fashions. However, Appellant has not submitted any evidence as to the source of deposits nor he has shown that the amounts are on account of sale and loan etc. neither he has correlated the entries with the ledger for sale etc. There is no basis in the claim of Appellant that explanation was available in the cash book and the books of account are audited. Hon'ble Delhi High Court in the case of Goodyear India Ltd., 246 ITR 116 (Del) have held that the broad proposition that once there is tax audit u/s. 44AB, AO should not insist upon production of records or details cannot be laid down and merely because an audit report is available, there is no fetter on the power of Assessing Officer to require the Assessee to justify its claim with reference to records, materials and evidence as such power is inherent in an Assessing Officer in the scheme of the Act. Therefore, it was incumbent on the Appellant to establish his claim that cash was received in the regular course of his business with documentary evidences. Further, from perusal of the Balance Sheet, it is seen that there is negative capital of ₹ 1,00,04,188/- at the end ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... withdrawal of ₹ 34,34,000/- from the bank account and remaining cash deposits of ₹ 15 lac is received from PAM Fashions. In support, he has filed the summary of cash transaction made during the year and the date-wise detail reproduced hereunder: Sr. No. Particulars Amount (in Rs.) i) Opening Balance as on 1.4.2011 7,46,238 ii) Add: Cash withdrawal 34,40,000 Add: Cash receipt from PAM fashion 15,00,000 49,40,000 iii) Total 58,86,238 iv) Less: Cash deposit 52,75,000 56,35,651 Less; Cash payment 3,60,651 v) Cash balance as on 5.3.2012 (last date of cash deposit) He also submitted a date wise details of cash book which is tabulated hereunder in support of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,44,213 11. 23.05.2011 6,44,213 -- -- 1,00,000 -- 5,44,213 12. 25.05.2011 5,44,213 -- -- -- 410 5,43,803 13. 30.05.2011 5,43,803 -- -- 2,50,000 -- 2,93,803 14. 31.05.2011 2,93,803 -- 10,00,000 -- 10,510 12,83,293 15. 04.06.2011 12,83,293 -- -- 1,02,000 530 11,80,763 16. 08.06.2011 11,80,763 -- -- 3,00,000 -- 8,80,763 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 29. 13.09.2011 10,81,728 -- -- 2,00,000 -- 8,81,728 30. 15.09.2011 to 20.09.2011 8,81,728 -- -- -- 1,680 8,80,048 31. 23.09.2011 8,80,048 6,00,000 - -- -- 14,80,048 32. 24.09.2011 14,80,048 -- -- -- 430 14,79,618 33. 26.09.2011 14,79,618 3,50,000 -- --- -- 18,29,618 34. 28.9.2011 18,29,618 -- -- -- 395 18,29,223 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -- 1,50,000 905 3,31,751 47. 28.11.2011 to 30.11.2011 3,31,751 -- -- -- 10,990 3,20,761 48. 05.12.2011 3,20,761 -- -- 1,50,000 950 1,69,811 49. 07.12.2011 to 22.12.2011 1,69,811 -- -- -- 19,385 1,50,426 50. 26.12.2011 to 30.12.2011 1,50,426 -- -- 72,000 10,765 67,661 51. 02.01.2012 67,661 -- 5,00,000 -- 905 5,66,756 52. 06.01.2012 5,66,756 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is submitted that appellant during the year under consideration is living with his parents and is not having any child. It is further submitted that during the course of assessment proceedings vide his reply placed at page 32 of Paper Book has submitted as under: 2. Detail of Drawings made in capital account of Proprietor from KNT Overseas A. Amount transferred from Current a/c to Saving account shown in drawings: 10,62,500 B. LIC Paid 22,478 Total 1,10,84,978 . 4. Detail of household expenses LIC paid from KNT Overseas 22,478 LIC 12,262 Household expenses Cash drawing from Saving A/c. 60,000 Thus, he submitted that the addition is based on assumption from bare perusal of the current account, and therefore, same cannot be sustained. 13. Lastly, with regard to addition of ₹ 12,000/- on the basis of difference as per the amount mentioned in rent agreement and shown in the P L account, he submitted that rent agreement was executed on 30.11.2009 which was for the period of 11 months. He drew our attention to the last clause of the agreement wherein there was a stipulation that the rent was increased 10% per month and the increm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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