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TMI Blog2022 (3) TMI 1025X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has submitted cash flow statement wherein the sources of deposits in bank account are well explained and this statement is not conclusively and adequately rebutted by the lower authorities. Hence we are inclined to hold that the assessee has explained the source of deposits and the same deserves to be accepted. Therefore, we allow this Ground of assessee. - I.T.A. No. 157/Ind/2021 - - - Dated:- 9-3-2022 - Shri Mahavir Prasad, Judicial Member And Shri Bhagirath Mal Biyani, Accountant Member For the Appellant : Shri Yash Kukreja, AR For the Respondent : Shri Amit Soni, Sr. DR ORDER PER BHAGIRATH MAL BIYANI, A.M.: This appeal filed by the assessee is directed against the order of learned Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [ Ld. CIT(A) in short] dated 14.06.2021, arising out of the assessment-order dated 27.12.2019 passed u/s 143(3) of the Income-tax Act, 1961 [ the Act in short] by the Income-Tax Officer 1(1), Ujjain [ Ld. AO in short]. 2. The brief facts of the case, as culled out from the record, are that the Revenue got information that the assessee had deposited a total sum of ₹ 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not based on independent application of mind by the AO on fresh information within his possession. The appellant therefore contends that the order passed u/s 143(3) r.w.s. 147 is bad in law and should be quashed. 5. The submissions of the appellant have been carefully considered. Through his submissions the appellant has challenged the very order passed u/s 143(3) r.w.s. 147. However, this issue has neither been raised in the grounds of appeal nor has any additional ground been filed in this respect during appeal proceedings. Therefore, the only issue to be adjudicated in this case is regarding the addition of ₹ 11,19,200 held to be appellant's unexplained income u/s 69A. Be that as it may, it is seen that the AO has properly analysed the information in his possession which was the fact of deposit of cash in the bank account of the appellant. The appellant is not engaged in any business and draws income from salary and pension. It is incumbent on the appellant to explain the source of cash in his hands for deposit in his bank account. The fact of cash deposit is not doubted, the only question is the source in the hands of the appellant. The appellant perhaps seeks t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re such that during the previous year 2011-12 relevant to the assessment year 2012-13, the assessee made an aggregate deposit of ₹ 11,19,200/- on various dates in his bank account with State Bank of India. During assessment-proceeding, when the Ld. AO asked the assessee to explain the source of deposits, the assessee submitted a cash flow statement and tried to convince the Ld. AO that he had sufficient funds to make the impugned deposits. However, the Ld. AO was not satisfied with the submissions of assessee and made an addition of ₹ 11,19,200/- in total income by observing as under: As per return, the assessee has derived income from Salary pension from Army during the year under consideration. The assessee was asked to explain the cash deposit in saving bank account of ₹ 1119200/-. In this regard the assessee has stated that The assessee is retired Army officer and working as Sub inspector and earned Salary during the year under consideration. The assessee has also received Pension from Indian Army of ₹ 153922/- during the year under consideration. The assessee has deposited entire 1119200/- from his withdrawal from bank on various dates during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rroneous presumption. Now coming to the explanation of the appellant on merits, the submissions made before the AO have been reiterated in the present appeal. The simple explanation is in the form of a cash flow which has been reproduced above in this order. It is the contention of the appellant that he has been withdrawing money from his bank account at regular times, and the surplus from the same is the source of deposit. It is straightaway observed that the appellant has claimed an opening cash balance of ₹ 7,90,000. The withdrawals made by the appellant from his bank account are small amounts through ATM withdrawals. He is declaring only ₹ 10,000 per month as household expenses and the surplus is claimed to be the source for deposit of cash. This explanation is simply not acceptable. The contention of household expenditure of only ₹ 10,000 per month, stretches the imagination too far. This works out to about ₹ 300 per day which is lower than the minimum wage. There being no evidence for the same, it is apparent that the cash flow is an afterthought to justify the cash deposit. Similarly, there is no evidence of the opening balance, nor any explanation as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usehold expenses, which comes to ₹ 300/- per day only which again is unbelievable. Thus, the Ld. DR contended that the assessee was not having sufficient sources to explain the cash deposits made in bank account and hence the addition made by Ld. AO is in order, which deserves to be upheld. 7.6 We have considered rival contentions and submission of both sides and also perused the material available on record. On a careful consideration, we firstly observe that the assessee is a retired army officer and thereafter working as sub-inspector. The assessee is earning income from pension and salary only and there is no other source of income available to the assessee. Thereafter, we also observe that the assessee is not engaged in any kind of business or profession and therefore not required to maintain books of account or prepare Balance-Sheet. Hence the assessee is justified in preparing a cash flow statement and submitting the same to Ld. AO. We have perused this cash flow statement and observed that the statement clearly depicts the opening balance of cash, the withdrawals made from the bank during the year, the deposits made in the bank during the year and the closing balan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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