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TMI Blog2021 (5) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... reason to interfere in the finding of Ld. CIT(A) and thus confirm the addition. Addition u/s 69A - unaccounted business receipt - no evidence of nexus between the cash withdrawals and redeposit in the bank account - HELD THAT:- We find that except certain withdrawals and deposits in round figures no other entries of day to day cash income/expenditure are appearing. It is not clear that the cash flow statement is only for the individual cash transactions or all the transactions carried out by the assessee during the year. Assessee has also failed to explain various entries appearing in the bank statement specially with regard to the amount withdrawn by Shri Surendra Saha and Shri Mukesh Sahu during the financial year 2009-10 which has been claimed as source of cash as opening balance We find that since the beginning of the assessment proceedings till now the explanation and submission made by the assessee lacks clarity and it is hard to reach a conclusion about the source of cash deposited. However we find that various submissions were filed by the assessee to explain the source but revenue authorities could not go deeper to bring the truth on record. Further Ld. A.O as well ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h go the root of the matter. 6. On the facts and circumstances of the case and applicable law, Ld. CIT(A)-I, Bhopal erred in sustaining addition of ₹ 4,50,000/- under section 69A which was made by Ld. A.O of by applying the provisions of section 68 of the Act. 7. That, the appellant, carves leave to add, amend, alter or otherwise raise any other ground of appeal. Assessment Year 2011-12 1. On the facts and circumstances of the case and applicable law, Ld. CIT(A)-I, Bhopal erred in sustaining the order passed by Ld. A.O u/s 143(3) rws 147 which is contrary to the material on records and provisions of the Act, and bad in law. 2. On the facts and circumstances of the case and applicable law, Ld. CIT(A)-I, Bhopal erred in not providing the copy of reasons recorded which forms the basis of making assessment under section 147 rws 143(3). 3. On the facts and circumstances of the case and applicable law, Ld. CIT(A)-I, Bhopal erred in sustaining addition of ₹ 35,00,000/- as deposit of cash in savings bank account from undisclosed income. 4. On the facts and circumstances of the case and applicable law, Ld. CIT(A)-I, Bhopal erred i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,35,000 644745 2 05.05.2009 1,50,000 644747 3 27.04.2009 1,65,000 506483 TOTAL 4,50,000 For the items at Sr. No.1 and 2 These amounts were received as loan from Shri Arun Kumar Tiwari. Loan confirmation letter and bank statement of Shri Arun Kumar Tiwari was submitted. Identity of lender - Address of Shri Arun Kumar Tiwari is mentioned both on the loan confirmation letter and his bank statement Genuineness of transaction - Transactions are executed through banking channel Creditworthiness of transaction Established through bank statement of Shri Arun Kumar Tiwari who has confirmed the transaction. Source of credit of ₹ 2,85,000 appearing in the bank statement stands explained. b. Ld. CIT(A) in his order has stated that there is deposit of cash prior to clearing of cheque. It is submitted that assessee is not required to explain (source of source'. Reliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idering the above mentioned facts and circumstances of the case and the applicable law, addition made u/s 68 ought to be deleted. The closing balance of cash as on 31.03.2010 of ₹ 20,52,304 is available as opening cash balance as on 01.04.2010 i.e. for AY 2011-12. [PB 7 - AY 2010-11] 4. AY 2011-12 - addition of ₹ 35,00,000 u/s 68 a.Closing balance of cash as on 31.03.2010 of ₹ 20,52,304 is available as opening cash balance as on 01.04.2010 for the impugned year i.e. AY 2011-12. [PB 9 - AY 2011-12] b.Assessment for AY 2011-12 was completed u/s 143(3) on 11.02.2014 by assessing the income same as returned income. [PB 03-04 - AY 2011-12] c.The closing cash balance of ₹ 20,52,304 stands accepted as no doubt has been raised. d.The explanation of source of deposit of cash to the extent of ₹ 30,00,000 is accepted by Ld. AD in the assessment order itself. Details of which are as under i. Page 3 - As such sources of only ₹ 30.00 lacs as against ₹ 35.00 lacs are found to be explainable.N ii. Page 4 para 9 - Notwithstanding the above, the assessee has failed to fully explain the nature and source of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Year 2011-12 alleging that Ld. CIT(A) erred by not admitting additional evidence filed u/s 46A of the Income Tax Rules also deserves to be dismissed as no submissions have been putforth before us by the Ld. Counsel for the assessee. 10. Now the effective grounds on merits are with regard to addition made u/s 68 of the Act at ₹ 4,50,000/- for Assessment Year 2010-11 and u/s 69A of the Act at ₹ 35,00,000/- for Assessment Year 2011-12. 11. As regards the addition for ₹ 4,50,000/- for Assessment Year 2010-11, we find that the addition has been made for following three amounts credited in the bank account. S.No Date Amount (Rs.) Cheque No. 1 24.04.2009 1,35,000 644745 2 05.05.2009 1,50,000 644747 3 27.04.2009 1,65,000 506483 Total 4,50,000 12. Assessee faile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating the transaction of purchase of land to materialise. 17. Further going through the finding of Ld. CIT(A), we find that he has observed that the assessee is keeping a huge cash in hand. There were repeated withdrawals during January, 2010 to May, 2010 and the assessee continued to accumulate cash till she deposited ₹ 35,00,000/- in bank account in October, 2010. During the assessment appellant claimed to have made payment to Shri Mahesh Sahu and Surendra Sahu but failed to furnish any evidence of nexus between the cash withdrawals and redeposit in the bank account. 18. So far as assessee s contention that there is no legal hurdle in keeping idle cash in hand, we find merit but surrounding circumstances also needs to support the contention of keeping idle cash. Now in the case of the assessee admittedly no books of accounts are maintained. Her source of income includes income from House Property and income from restaurant. As there were no details filed about the type of business but prime facie it seems that the assessee is carrying out the business and offering income on presumptive basis, liable to be taxed u/s 44AF/44AD of the Act. 19. During t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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