9911796707
TMI Blog2022 (8) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... At the time of hearing of the appeal before ld. CIT(A) assessee requested time to submit the evidence but the same were not placed on record on account of corona virus - HELD THAT:- Considering the additional evidence placed on record the contentions raised by the assessee that the credit is already explained based on the evidence placed on record. Since, we have based on the argument of the ld. AR of the assessee admitted that these additional evidences but since these evidence were not placed before the AO we deem it fit to set aside this issue to the file of the Assessing Officer to verify the veracity of the record and contention raised by the assessee. Giving sufficient opportunity to the assessee. The AO is directed to decide whether based on the evidences placed on record the addition of Rs. 2,00,000/- is required to be added or not and with this observation the ground no. 3 raised by the assessee is allowed for statistical purposes. Deduction u/s 80C made in respect of HDFC life insurance - HELD THAT:- CIT(A) did not deal this issue as assessee has not placed on record a petition under Rule 46A but assessee contended that details are already in bank statement. Considering t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue was issued by M/s Ganesham Silks in the name of the appellant (as repayment of earlier loan/advance) which was deposited in the bank account of the appellant and credited on 04.01.2017. ii) Bank statement of earlier period showing loan advanced to M/s Ganesham Silks amount to Rs. 2,00,000/- on 15.03.2016." 4. Brief facts of the case are that the assessee is a lady resides with her husband and working in China since, 2010. Due to declaration of demonetization, she had to deposit her old currency notes cash in hand in the bank accounts the source of which were stridhan, money received on various occasions, like marriage, other social occasions as cash gifts from relatives, cash withdrawals from bank account, accumulated past savings/income in the form of cash. The cash kept as security and future emergency in the mother land India. The entire source of cash deposits along with cash flow statements, bank statements, confirmation of gifts etc. were submitted during the assessment proceedings but ignoring the evidences placed on record the ld. A.O. made the addition of Rs.15,00,000/- u/s 69A as unexplained cash deposits in bank account which the assessee deposited on account of de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000/- was withdrawn as cash from NRE bank account no. 02891560001408 at HDFC bank, Johari Bazar, Jaipur, for the period from 09.02.2011 to 15.02.2016 This cash was deposited back in the bank account during demonetization period. Bank account statements of NRE Bank account are furnished at paper book page no. 4 to 15. Details of cash withdrawals are furnished at Annexure-A to these written submissions. It is humbly submitted that the cash was deposited in the bank account due to directions/instructions of government as demonetization was declared. Cash flow statement is furnished at paper book page no. 1 to 3. 3. That a sum of Rs.1,10,000/- was withdrawn as cash from NRO bank account no. 50100085719780 at HDFC bank, Johari Bazar, Jaipur, for the period from 02.04.2016 to 29.10.2016 This cash was deposited back in the bank account during demonetization period. Bank account statements are furnished at paper book page no. 16 to 17 and details of cash withdrawals are furnished as under :- S.NO. DATE AMOUNT 1 02.04.2016 20000 2 28.04.2016 20000 3 07.07.2016 10000 4 20.09.2016 20000 5 27.09.2016 10000 6 27.09.2016 10000 7 29.10.2016 20000 Total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT Vs. K. Sreedharan 201 ITR 2010 (Kerala High Court) The period of four years is not so long period as to rebut the presumption regarding the continued availability of amount. 3 Sunil Mathur Vs. ITO (ITAT, Jaipur) Cash deposits addition of Rs.13.50 lakhs was deleted by holding that the assessee has explained that the source of cash deposits during the year is out of earlier two years withdrawals and cash in hand at the beginning of the year in support of which the assessee has submitted cash book and cash flow statement for previous two financial years depicting the individual transactions of receipts and payments/withdrawals. (para no. 15 at paper book page no. 61 to 62) 4 Dhakeshwari Cotton Mills Ltd. 26 ITR 775 Supreme Court A suspicion remains a suspicion unless the same is established and can never take place of reality. Assessment cannot be made on guesswork without any reference to any material on record. 5 Smt. Krishna Agarwal Vs. ITO (ITAT, Jodhpur) Addition for cash deposits of Rs.68,95,000/- in bank account was deleted holding that cash withdrawals in earlier two years have not been disputed by the revenue and only reason why the explanation of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank account of the assessee and are verifiable from relevant records. 10 Muon Computing Pvt. Ltd. Vs. ITO ITA No. 7606/Del/2019 dated 04.08.2021 (ITAT Delhi) Ld. CIT(A) observed that despite having sufficient cash in hand, the assessee has withdrawn the amount which cannot be the sole reasons for making addition purely on the basis of suspicion. 11. Ashok Kumar Banthia Vs. DCIT ITA No. 297/Jodh/2019 (ITAT, Jodhpur) Affidavit submitted by assessee cannot be rejected without any plausible reason. It is further submitted that as per Indian tradition and customs, Indian ladies keep their savings/assets in the form of cash with them for various purposes not limited to their children marriage, support the family for future contingency situations etc. They prefer cash savings more safe as compared to bank balances as they even hide their savings from their husband, children and other family members. You'rhonour's kind attention is invited towards decision of Hon'ble Delhi High Court in the case of Jaya Aggarwal Vs. ITO in ITA no. 315/2005 decided on 13.03.2018 (paper book page no. 46 to 50, relevant page no. 49 to 50), wherein the Hon'ble High Court deleted the addition for u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mounts on different dates. In support it has been argued that the mother had made withdrawals from the bank account aggregating Rs. 5,01,000/- on 16 dates starting from 13.08.2012 to 05.12.2014. The withdrawals have 'been m-ad-e-Tn-the amounts ranging from Rs. 10,000/- to 55,000/-. The very nature i.e. periodic withdrawal and amount indicate that the same have been made to meet house hold expenditure. It is not explained as to why the cash was not deposited in the bank account by the appellant particularly when she could not carry the same to China. It is not explained why the mother was giving cash amounts on different dates when both of them were maintaining regular bank accounts in India. Further, it is not possible that the mother would make regular cash withdrawals just to gift the entire money to her daughter. No evidence such as affidavit; income tax return; and details of house hold expenses of mother has not been filed. The appellant has also argued that she was married on 21.04.2002 and she received cash gifts that time from her relatives in which was her Stridhan. It is not explained as to why the so called Stridhan was kept in cash form for 14 long years waiting for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shed in the form of high denomination notes. General Public was allowed to deposit the demonetized bank notes between the period 09.11.2016 to 30.12.2016. Failure in submitting satisfactory explanation in this regard before the AO and again not submitting any explanation during the appellate stage despite having repeated opportunities, clearly shows that the appellant is not in a position to explain the source of these huge cash deposits. The only inference which can be drawn out of these facts and circumstances is that the appellant has deposited her unaccounted money in the bank account. 8.6 Hon'ble Supreme Court in Krishan Kumar vs./T0[2019] 107 taxmann.com 464 (SC) has upheld the addition made by AO under section 69A where the assessee had failed to satisfactorily explain the source of cash deposit. 8.7 The issues relevant to the demonetization of high denomination notes was considered by the Supreme Court in the case of Sreelekha Banerjee v. Commissioner of Income-tax. [1963] 49 ITR (SC) 112; [1964] 2 SCR 552 (SC). The court held that where assessee contended that high denomination notes represented not cash balance but some other money and he failed to explain source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o kept as security for her future use which is a common Indian lady would like to keep the cash on social and medical emergency that may arise in future and that probability cannot be denied. The assessee has explained the cash to the extent of Rs. 22,73,500/- is duly available with the assessee by filing a day to day cash accumulated by her in cash flow statement. She has on account of demonetization of currency deposited only Rs. 15,00,000/- SBN notes on 12.11.2016 only. She has not thereafter deposited any money. This proves that the assessee was having the sufficient cash on hand with her, contrary the revenue has not proved that the assessee has utilized the cash available with her. As regards the visit of India on various occasions, the assessee has already stated in her submission that the expenses are borne by her husband and even though alternatively she is having the cash available with her out of the balance amount which is not deposited in the bank account by the assessee. The source of cash deposit was from cash flow statement placed on record. In addition, the assessee has also placed on record the gift deed for an amount received from her mother which is supported by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash in hand how the assessee keep such money in hand for substantially high for more than 10 years and the assessee being non resident Indian the utilization of these withdrawal towards expenses cannot be denied. The assessee has substantiality made withdrawal even though the cash available with her. Explanation of the assessee is not convincing to the case flow statement placed on record by the assessee and is self serving document. The ld. AR of the assessee has not filed any detailed regarding expenses that she incurred on her visit to India on each occasions. 10. In rejoinder, the ld. AR of the assessee submitted that it is in habit of all the lady that she kept money for the use in her future for any emergency in her family and medical purposes having these much cash on hand looking to the stature of the family cannot be denied. As regards the probability of expenses on visit out of cash of Rs. 22,73,500/- assessee has deposited only Rs. 15 lacs and balance still available for the alternative argument to counter the argument of ld. DR. 11. We have heard the rival contentions, and also gone through the written submission placed on record by both the parties and the legal deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn by the Hon'ble Supreme Court in the said cases, we hold that the AO made the assessment merely on suspicion and without bringing any cogent material on record to establish that assessee cannot keep the cash in his hand being a NRI. Accordingly, we uphold the order of the CIT(A) in deleting the addition of Rs. 34,70,000/- made by the AO and dismiss the grounds raised by the revenue in this regard." In the above judgment the Coordinate Bench decided that the addition made by the AO merely on suspicion and without bringing any cogent material on record to establish that assessee cannot be keep the cash on hand being a non resident of India. It has been observed from the record that the assessee as meticulously given case flow statement giving different date wise cash available is supported by the bank statement placed on record. The assessee has also placed on record the affidavit of his mother supported by the withdrawal made by her mother from her bank accounts all these evidences, the Revenue failed to establish any fault or contrary finding to this bulk of papers and merely the addition sustained on account of suspicious reasons. We also find force in the argument of the ld. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . for verification of the contention of the assessee." 14. At the time of hearing of the appeal before ld. CIT(A), the ld. AR of the assessee requested time to submit the evidence but the same were not placed on record on account of corona virus and the working of the public life was very much affected. Now because situation became normal the record has been obtained from the bank wherein the money given earlier were received back is placed on record in the form of photocopy of cheque and the statement wherein in earlier year the money was given to Shri Ganesham Silks. 15. Per contra, the ld. DR relied on the orders of the lower authorities but in all fairness accepted the contentions that considering the fresh evidence that matter be verified by AO. 16. We have heard the rival contentions and perused the material available on record. Considering the additional evidence placed on record the contentions raised by the assessee that the credit is already explained based on the evidence placed on record. Since, we have based on the argument of the ld. AR of the assessee admitted that these additional evidences but since these evidence were not placed before the AO we deem it fit to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
