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TMI Blog2022 (7) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... credit relating to borrowings made by the assessee from his friends amounting to of Rs. 1,00,500/-. The ld. counsel for the assessee drew our attention to grounds raised as under: "1. The Ld. A. O. has erred in making and Ld. CIT(A) has erred in confirming addition of Rs. 49,000/- towards cash deposit with IDBI Bank, even though it was fully explained that the said cash deposit were made out of the cash available with him from withdrawals as well as from personal borrowings from time to time. 2. The Ld. CIT(A)-5, Ahmedabad further erred in not considering the details of cash transactions filed before during the course of the assessment and made available to him at the time of appellate proceedings. The Ld. A. O. has erred in making and Ld. CIT(A) has erred in confirming addition of Rs. 41,900/- towards cash deposit with HDFC Bank, even though it was fully explained that the said cash deposit were made out of the cash available with him from withdrawals as well as from personal borrowings from time to time. (2a) The Ld. CIT(A)-5, Ahmedabad further erred in not considering the details of cash transactions filed before during the course of the assessment and made available to h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s erred in confirming addition of Rs. 1,00,500/- towards cash credit as per para 9.4 as regards borrowing from appellant's friends even though it was fully explained that the same was received as a loan from his friends. (6a) The Ld. CIT(A)-5, Ahmedabad has erred in not considering the issue even though it was brought to his notice that summons issued and served to the cash creditors, and time allowed to then for their representative. 3. Taking up first the ground no. 's 1 & 2 relating to the addition made on account of unexplained cash deposits of Rs. 49,000/- and Rs. 41,900/- in the bank account of the assessee in IDBI and HDFC respectively, the ld. counsel for the assessee pointed out that it had been repeatedly explained to the authorities below that these deposits were attributable to cash withdrawals made from the said accounts itself, that the details were also enclosed for verification but the authorities below did not consider the explanation of the assessee and confirmed the addition. He drew our attention to para 3.2 of the CIT(A)'s order where identical submissions made by the assessee with respect to both cash deposits were produced. For the sake of brev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the ld. CIT(A). 6. We have heard contentions of both the parties, and we agree with the ld. counsel for the assessee that the addition on account of cash deposits of Rs. 49,000/- and Rs. 41,900/- in IDBI and HDFC Banks has been confirmed by the ld. CIT(A) without appreciating the contentions of the assessee; that the same could be attributed to the cash withdrawn from the same bank accounts, which were corroborated with the bank statement also. The Revenue has not controverted the fact of sufficient cash withdrawal in Bank prior to deposit. We do not agree with the ld. CIT(A) that the assessee has to demonstrate one-to-one nexus between cash deposits and withdrawals which is virtually impossible. As long as there is cash withdrawal prior to deposits and gap between the withdrawals and deposits is a reasonably short period of time, it can be, in the absence of any evidence to show the utilization of the cash withdrawal, safely presumed that the cash deposits have been sourced from the cash withdrawn. In view of the above, we find no justification in the order of the ld. CIT(A) upholding the addition made on account of cash deposits in the bank accounts of the assessee. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of 200 equity shares of India Bulls bought on the same day only and squared off. He contended that all the transactions which the Revenue had pointed out as investment made by the assessee were similarly demonstrated through these contract notes to the effect that they did not relate to any actual purchase of shares with physical delivery being taken, but only related to immediately purchase and sales of shares and the assessee getting only net balance thereof. The ld. counsel for the assessee pointed out that the evidence in this regard, of the investments so noted by the Revenue authorities, were filed to them, but were not appreciated. He pointed out that the same were also placed before us in Paper Book at pages 11-32. The ld. DR though was unable to controvert the contentions of the assessee as demonstrated through broker-notes, he however relied on the order of the ld. CIT(A) stating that despite repeated opportunities given, the assessee was not able to substantiate the source of investment made as noted by the ld. CIT(A) in para 3.10, 3.11 and 3.12. 10. The ld. counsel for the assessee, per contra, drew our attention to his submission in this regard and reproduced in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be deleted. He also pointed out that the AO had accepted loan taken by the assessee from Mr. Rajkumar Sharma, and the CIT(A) had accepted the loan shown to be taken by the assessee from his father of Rs. 78,000/- holding that it could not be doubted that his father had given such advances out of his savings and agricultural income in piecemeal. He therefore contended that there was no reason to doubt the genuineness of loans taken from friends as above. The ld. DR on other hand relied on the orders of the authorities below. 14. We have heard contentions of both the parties. We have noted that during the assessment proceedings, the AO found that the assessee made certain transactions in cash relating to share trading transactions, source of which, he stated was loans from his friends and family. However, the loans amounting to Rs. 1,00,500/- was added to his income as source of the same was not explained to the satisfaction of the Revenue authorities. The assessee had given complete list of his friends from whom loans were taken, and it is evident from the same that he had taken very small amount of loan ranging from Rs. 3,000/- to Rs. 15,000/- and all the details regarding his ..... X X X X Extracts X X X X X X X X Extracts X X X X
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