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TMI Blog2024 (2) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... essee. Thus, we sustain the order of the ld. CIT (A) and reject the grounds raised by the assessee. Appeal of the assessee is dismissed. - SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER For the Assessee : None. For the Department : Shri Kanv Bali, Sr. D. R. ORDER PER C.N. PRASAD, J.M.: 1. This appeal is filed by the assessee against the order of the ld. Commissioner of Income Tax (Appeals)-5 [hereinafter referred to CIT (Appeals)] Ludhiana dated 7.11.2019 for assessment year 2013-14. 2. The assessee in its appeal has raised the following substantive grounds of appeal:- 1. Assessment made under section 144 was bad in law as the requisite conditions for assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see requiring the assessee to explain the cash deposits of Rs. 71,00,000/- in the bank account of the assessee, the assessee did not appear or furnished any explanation. Thus, since the assessee has failed to offer any explanation with regard to cash deposits the Assessing Officer treated such deposits as income of the assessee under section 69 of the Income Tax Act, 1961 (the Act) and passed best judgement assessment under section 144 of the Act. 5. The assessee preferred appeal before the ld. CIT (Appeals) and in the course of appeal proceedings the assessee furnished various additional evidences. Admitting the additional evidences the ld. CIT (Appeals) called for a report from the Assessing Officer. After obtaining the report from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, the assessment was finalized ex-parte and the deposit of Rs. 71,10,000/- in the HDFC Bank account of the assessee, was considered out of assessee's undisclosed income and addition of this amount was made to the returned income of the assessee u/s 69 of the Income Tax Act, 1961. The facts of the case, the basis of passing the ex-parte assessment order, the addition made by the AO and the arguments of the AR during the course of appellate proceedings have been considered. During the appellate proceedings, the AR filed an application under Rule 46A along with a cash flow statement and other documents to explain the source of cash deposit. In the remand report submitted by the AO, it is mentioned that sufficient opportunities were pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank account of the assessee. A perusal of the same shows that the opening cash at the beginning of the year has been taken at Rs. 19,24,286/- and the first cash deposit during the year is of Rs. 18,00,000/- on 02.05.2012 followed by Rs. 5,00,000/- on 03.05.2012. This cash has been withdrawn on 04.05.2012 amounting to Rs. 22,50,000/- and thereafter there are entries of cash deposits and withdrawals. To explain this opening cash of Rs. 19,24,286/-, the assessee has shown receipts from M/s. Fateh Singh Niyamat Singh Commission Agent amounting to Rs. 8,46,286/-apart from cash withdrawal from HDFC Bank account. It is however relevant to note that there are cash deposits also in the bank account of the assessee during the month of February a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that there are cash withdrawals from the bank accounts but part of the same has to be treated as used for meeting the day to day personal expenses of the assessee and household expenses of the family. Accordingly, no benefit of the opening cash of Rs. 19,24,286/- can be given to the assessee and further the negative balance of Rs. 3,75,714/- is also required to be added to the income of the assessee. Accordingly, the addition to the extent of Rs. 23,00,000/- is found sustainable and hence confirmed. 6. On going through the observations of the ld. CIT (Appeals) we do not see any good reason to interfere with the findings of the of CIT (Appeals) especially in the absence of any evidences produced before us to rebut the findings of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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