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TMI Blog2023 (3) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... l in Kavitaben Chintanbhai Patel [ 2022 (8) TMI 246 - ITAT AHMEDABAD] In view of the above factual discussion, no merit in the addition made by assessing officer and sustained by ld CIT(A), and accordingly direct the assessing officer to delete the addition. In the result, the grounds of appeal raised by the assessee are allowed. - ITA No.239/SRT/2022 - - - Dated:- 13-3-2023 - Shri Pawan Singh, Judicial Member For the Assessee : Shri Rajesh C Shah, C.A For the Revenue : Shri Vinod Kumar, Sr-DR ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of National Faceless Appeal Centre, Delhi [for short to as NFAC/Ld.CIT(A) ] dated 30.06.2022 for assessment year 2017-18, which in turn arises out assessment order passed by Income-tax Officer-ward-1(4)(4)/ Assessing Officer under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) dated 12.12.2019. The assessee has raised the following grounds of appeal:- 1. On the facts and in the circumstances of the case as well as law on the subject, the learned assessing officer has erred in making addit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh income and cash expenses, in his hand in following manner: Asst.Year Opening cash-in-hand Cash income during the year Cash withdrawal during the year Closing cash-in-hand balance A.Y 14-15 4,92,185 2,10,388 49,128 6,53,445 A.Y 15-16 6,53,445 3,59,623 63,396 9,49,672 A.Y.16-17 9,49,672 4,02,830 2,74,895 10,77,607 A.Y 17-18 10,77,607 81,242 upto 18.11.2016 42,476 upto 18.11.2016 11,16,373 upto 18.11.2018 4. Cash On the basis of aforesaid details, the assessee submitted that he was having sufficient cash-in-hand on 18.11.2016 the assessee was having cash available of Rs. 11,16,373/-, out of which the assessee deposited Rs.10.75 lakh in his bank account on 23.11.2016. The assessee furnished capital account, balance-sheet, ITR, computation of income. To substanti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n-hand. Such details were supported by the ITR filed for four preceding assessment years. On the basis of details furnished before NFAC/Ld. CIT(A), the assessee fully explained and demonstrated about of total cash deposit of Rs.10.75 lakh. 7. The ld AR for the assessee submits that assessee has shown cash income of Rs.2.10 lakhs. Rs. 3.59 Lakhs, Rs. 4.02 lakhs and Rs. 81,242/- for AY 2014-15 to 2017-18 respectively. The income of AY 2017-18 was considered upto date of cash deposits in bank on 18.11.2016, thus, the assessee substantiated total cash income of Rs. 10.54 Lakhs for past three years. The assessee has cash withdrawal of Rs. 49,128/-, Rs. 63,396/- Rs. 274,895/- (out of Rs. 274,895/- Rs.2,00,000/- was deposited in bank) and Rs. 42,476/- for 2014-15 to 2017-18 respectively. On the basis of aforesaid withdrawal, the ld AR for the assessee submits that a sum of Rs.6,24,188/- is fully explained and shown in the return of income much before demonetization period. 8. The Ld. AR for the assessee submits that Assessing Officer has not brought anything contrary to the submission and the ITR filed by the assessee. The remaining difference of Rs.4,50,812/- is out of opening cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er cash withdrawal of Rs.2,74,895/- reflected in the cash book can be verified as withdrawal from HDFC Bank on 25.01.2016. Keeping in view of all evidence available on record, the estimation available only of Rs.1 lakh was not justified. The Ld. AR for the assessee submits that assessee made cash deposit in one instance i.e. on 18.11.2016 consisting of Rs.500/- Rs.1,000/- specified bank notes. 11. So far as opening balance of Rs.4,92,185/- the amount of Rs.6.24 lakh cash deposited in bank is represented the cash saving out of cash income for assessment years 2014-15 to 2017-18. The assessee made total cash deposit of Rs.10.75 lakh, which means balance amount of Rs.4.51 lakh only the deposit for opening balance. The assessee started filing of his return of income from the assessment year 2014-15 as in earlier year the income of assessee was below taxable level. The Ld. AR for the assessee submits that assessee belonged to a reputed family and his grandfather was an industrialist started in dyeing and printing mills and were selling various chemicals on large scale for which opening cash balance keeping in view the family background of Rs.4,92,185/- is not a large amount opening ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period. So far as remaining part of cash deposit of Rs. 4,51,000/- is concern, I find that cash deposit is clear from cash book, which shows the opening cash balance of Rs. 4.92 lakhs. The assessing officer disputed the said figure of opening cash balance without verifying or cross checking from the entry in the capital account. The capital account and the computation of income for earlier years is not disputed by the assessing officer. The assessee is not showing meagre income in his return of income. In my considered view, once, the cash flow statement is not controverted by assessing officer as well as by ld CIT(A), which is based on the entry made in the cash book, then the source of cash deposit in the bank account cannot be brushed aside by the lower authorities. My view is also supported by the decision of division bench of Delhi Tribunal in Perminder Kaur Matharoo Vs ITO in ITA No. 840/Del/2021 (AY 2017-18) dated 15.11.2022 and Ahmedabad Tribunal in Kavitaben Chintanbhai Patel Vs ITO ITA No.306/Ahd/2021 (AY 2017- 18) dated 03.08.2022. In view of the above factual discussion, I do not find merit in the addition made by assessing officer and sustained by ld CIT(A), and accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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