2019 (4) TMI 2013

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..... e to make the deposits in the saving bank account cannot be doubted. More so, when the Departmental Authorities have not been able to identify the utilization of cash withdrawals from the current account in any other assets/ mode or manner. That being the case, the explanation of the assessee that being a contractor he required sufficient cash and the unutilized cash is again re deposited to savings bank account cannot be disbelieved on mere presumption and surmises. That being the case, since assessee s contention has not been proved to be false through proper reasoning and supporting material, the addition made under section 68 of the Act cannot be sustained. Disallowance of expenditure claimed - inability to produce any evidence .....

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..... come. Subsequently, on the basis of information received indicating that the assessee had deposited cash of more than ₹ 10 lakh in his bank account, the Assessing Officer re opened the assessment under section 147 of the Act. In response to the notice issued under section 148 of the Act, the assessee filed his return of income. During the assessment proceedings, the Assessing Officer called upon the assessee to explain the source of cash deposits in the bank account. In response, it was submitted by the assessee that he has undertaken a contract work which required cash payment to be made to daily labourers. Since, the assessee was having a current account, he opened a savings bank account to facilitate withdrawal of cash through ATM .....

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..... itted, the addition made is justified. 8. I have considered rival submissions and perused material on record. Undisputedly, in the relevant previous year the assessee has made cash deposits into his savings bank account. While explaining the source of such cash deposits, the assessee had submitted that such deposits were made out of cash withdrawals from the current account. Though, no substantive evidence has been submitted by the assessee to conclusively co relate withdrawals with the deposits, however it is observed, the fact that the assessee has made sufficient cash withdrawals from the current account has not been disputed by the Assessing Officer and learned Commissioner (Appeals). This fact is very much evident from the observati .....

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