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TMI Blog2012 (9) TMI 1202X X X X Extracts X X X X X X X X Extracts X X X X ..... ispute is regarding addition of ₹ 10,29,846/- on account of credit card payments. The AO noted from AIR information that the assessee had made payment of ₹ 10,29,846/- against credit card bills of ICICI bank and Standard chartered bank during assessment year 2007-08. The AO therefore, asked the assessee to file details which was not done. The AO thereafter asked the assessee to explain as to why the amounts should not be treated as income of the assessee. The AO after considering the explanation of the assessee including the details given noted that total income of the assessee was ₹ 3,75,060/- out of which a sum of ₹ 1,00,225/- had been invested and out of balance amount of ₹ 2,74,835/- a sum of ₹ 2,15,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard had been paid by taking loan from Citi Bank in next financial year. After considering the remand report of the AO CIT(A) observed that AO had duly considered the various documents submitted by the assessee and verified the claim of the assessee. Regarding transfer of money from one credit card to the other credit card, the CIT(A) found the claim of the assessee acceptable and verifiable. CIT(A) therefore, directed the AO to delete the addition aggrieved by which revenue is in appeal before the Tribunal. 2.1 Before us, the ld. AR submitted that the matter had been examined by the AO in the remand proceedings and there were no adverse finding given on the claim of the assessee that the credit card payments were mostly from two credit c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee filed summary of all transactions, summary of Citi Bank account and summary of Canara Bank account to explain the point which was duly examined by AO in the remand proceedings. The AO in the remand report, a copy of which has been placed on record had not pointed out any discrepancy. The total credit card payment of ₹ 2,76,231.99 is duly reflected in the summary of transactions. The ld. DR could also not explain as to how addition of ₹ 10,29,376/- could be sustained when there were inter-credit card transactions which were duly explained and actual credit card payment was ₹ 2,76,231/- which was duly reflected in the accounts. The AO himself in the remand report was satisfied by the explanation given which is cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the remand report dated 27.8.2010, the AO noted that explanation of the assessee that cash withdrawn for house repairs had not been utilized and same was re-deposited in the ATM. The AO however did not accept the explanation as there was huge gap between cash withdrawal and deposit and assessee could not produce any evidence to show that the cash withdrawal was not utilized. In reply to the remand report, assessee submitted that it was quite impossible to prove that the cash withdrawals remained unutilized. The very fact that cash was available showed that the same was not unutilized. It was also pointed out that the assessee had submitted cash flow statement which had not been rejected by the AO. CIT(A) after considering the explanation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d at page-10 of the paper book. The AO has produced no material to show that amounts withdrawn had been utilized by the assessee for some other purpose and were not available for deposit. Claim of the assessee has therefore to be accepted. A perusal of the cash flow statement shows that total cash including opening balance, cash withdrawn from bank and rent deposit was ₹ 3,91,426/- out of which ₹ 1,920/- was deposited in Canara Bank and ₹ 1,41,250/- in Citi Bank and balance were drawings of ₹ 2,44,500/- for personal purposes. The AO has given no finding that the drawings were inadequate. Under these circumstances, additions made by AO are not justified. We, therefore, see no infirmity in the order of CIT(A) in deleti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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