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TMI Blog2023 (7) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... als and re-deposit in bank a/c, which is the medical exigencies caused by Bhopal Gas Tragedy. If the sources of deposits are explained from prior cash withdrawals and the department has not disputed prior cash withdrawals, subsequent deposits cannot be treated as explained and no addition could be made. Assessee re-circulated those moneys by way of deposits, withdrawals and redeposits in the Bank A/c from time to time and the deposits/withdrawals made in current year also have the same genesis but since the assessee is a medical challenged retired employee, a complete track of the same could not be maintained/explained. We find weightage in this submission of AR. Also the assessee is unfit to earn any income due to several diseases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sold a residential property for Rs. 25,00,000/- during the previous year 2005-06. The assessee submitted that those receipts were deposited in bank account. However, the AO observed that the assessee had not deposited any huge amount in the bank account; therefore the claim that the assessee had deposited receipts of retirement benefits and sale proceeds of property is not acceptable. This way, being unconvinced with the submission of assessee, the AO applied section 69 of the Act and made addition of Rs. 16,21,000/- on account of unexplained deposits. 4. Aggrieved, the assessee carried matter in first appeal and made a detailed submission, which is reproduced in the order of CIT(A) in para 6. However, Ld. CIT(A) was not satisfied wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not made a single cash deposit of Rs. 16,21,000/- in Bank A/c (this very fact is also admitted by AO in assessment-order). Ld. AR submitted that the assessee has made deposits of smaller amounts such as Rs. 20,000/-, Rs. 1,50,000/-, Rs. 2,00,000/- etc. on as many as 9 occasions during the year and prior to making such deposits, the assessee has made withdrawals on about 14 occasions. Ld. AR strongly contended that the assessee is in the habit of making frequent withdrawals from Bank A/c for personal needs, mainly medical emergencies, and also re-depositing the same to the extent unutilized. Ld. AR argued that a cursory examination of the patten of withdrawals and deposits itself makes it very clear that the assessee has made re-deposits out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese submissions, Ld. AR very humbly prayed that taking into account the fact that the assessee has re-deposited cash out of preceding withdrawals coupled with the inability of assessee to earn any income from any source (except pension), the addition made by AO is not valid, the same must be deleted. 9. Per contra, Ld. DR representing the Revenue supported the orders of the lower authorities and argued that the assessee is not having direct sources to explain the deposits aggregating to Rs. 16,21,000/- made during the year. He further argued that the retirement-benefits and sale proceeds of property were received by assessee way back in the previous year 2003-04 and 2005-06 but the present case concerns with previous year 2007-08, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hole year. The assessee has in fact made smaller deposits on several days and prior to that, made cash withdrawals which is clearly evident from entries of deposits and withdrawals. Regarding the receipt of retirement benefits and sale proceed of property in past, Ld. AR submitted it is a fact that there were such receipts and those moneys were available to assessee. However, the assessee re-circulated those moneys by way of deposits, withdrawals and redeposits in the Bank A/c from time to time and the deposits/withdrawals made in current year also have the same genesis but since the assessee is a medical challenged retired employee, a complete track of the same could not be maintained/explained. We find weightage in this submission of Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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