2019 (5) TMI 1902

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..... vailability of unutilized cash for four years as reasonable, there is no reason to doubt such availability for two years in the instant case - thus as satisfied that the addition was wrongly sustained, therefore, order to delete the addition. - Decided in favour of assessee.
SHRI R.S. SYAL, VICE PRESIDENT Appellant by: Mrs. Deepa Khare Respondent by: Shri M.K.Verma ORDER PER R.S.SYAL, VP This appeal by the assessee arises out of the order passed by the CIT(A)-1, Aurangabad on 05-10-2018 in relation to the assessment year 2010-11. 2. The only issue raised in this appeal on merits is against the confirmation of addition of ₹ 14,84,500/- in respect of cash deposits in Savings Bank account. 3. Succinctly, the facts of the case .....

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..... er, there is a balance sheet drawn as on 31-03-2006 in which FDRs of different amounts have been shown, total of which is more than ₹ 15.00 lakh. She furnished her return for the A.Y. 2007-08 showing inter alia, interest income from FDRs to the tune of ₹ 1,60,812/-. This return was also accompanied by balance sheet showing FDRs with still a larger amount. Similarly for the A.Y. 2008-09, the assessee filed return declaring, inter alia, interest income from FDRs at ₹ 1,80,291/-. During the financial year relevant to this assessment year, the assessee got the FDRs encashed and the amount was declared as cash in hand with closing cash in hand standing at ₹ 17,72,617/-. A copy of her return for the A.Y. 2009-10 has been p .....

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..... ess it is proved by the Revenue that such amount was spent elsewhere. The Hon'ble Kerala High Court in CIT Vs. K. Sreedharan (1993) 201 ITR 1010 (Kerala) has held that : `The period of four years between 1976- 77 and 1980-81 is not so long a period as to rebut the presumption regarding the continued availability of the amount'. 5. Adverting to the facts of the instant case, it is seen that the assessee was regularly filing returns and balance sheets on year to year basis. The availability of cash in hand from maturity of FDRs in past and re-depositing of proceeds in the bank account in the instant year, cannot be doubted as the factum of maturity of FDRs has not been disputed by the AO. When the Hon'ble Kerala High Court in the aforementio .....

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