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TMI Blog2024 (2) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... ct was brought on record. In our view, the Assessing Officer has treated the cash deposit merely on the basis of human probability without bringing any adverse evidence on record that such cash deposit was unexplained money of assessee when the assessee was having sufficient money in his two NRE and one NRO account and explained the investment during the relevant period. In view of aforesaid observation, the additions are not justified. In the result, ground of the appeal is allowed. - SHRI PAWAN SINGH, JUDICIAL MEMBER AND DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER For the Assessee : Shri Mehul Shah, C.A. For the Department : Shri Vinod Kumar, Sr.DR Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the assessee is directed against the order of the learned Commissioner of Income Tax (Appeals), Ahmedabad-13 [in short, the ld. CIT(A)] dated 10/08/2023 for the Assessment Year (AY) 2012-13. The assessee has raised following grounds of appeal: 1. On the facts and circumstances of the case as well as law on the subject, the learned assessing officer has erred in re-opening assessment u/s 147 by issuing notice u/s 148 of the I.T. Act, 1961 with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act, proceeded for assessment. During the assessment, the Assessing Officer noted that the assessee provided details as called for. Such details were kept on record. The Assessing Officer further noted that no explanation in respect of cash deposit of Rs. 27.50 lacs in NRO Savings Bank with Royal Bank of Scotland, Surat was furnished by assessee. The Assessing Officer further noted that the explanation of assessee that source of cash deposit from cash in hand out of previous withdrawals kept for emergency requirement of his old and sick mother. The Assessing Officer also noted that the assessee was using cash for making demand draft and not furnished the details of investment of utilization of such money. The Assessing Officer treated the deposit of Rs. 27.50 lacs in NRO account as income from undisclosed sources while passing the assessment order on 26/12/2019 under Section 143(3) r.w.s. 147 of the Act. 3. Aggrieved by the additions in the assessment order, the assessee filed appeal before the ld. CIT(A). Before the ld. CIT(A), the assessee raised several objections on various factual aspects that no proper opportunity was given. The Assessing Officer not considered the with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 and explained that remaining Rs. 7.50 lacs was utilized for the care of his mother. The assessee also furnished copy of bank statement of NRE account and cash deposit in NRO account which was already given to Assessing Officer. On the objection of Assessing Officer that the assessee was using cash deposit for demand draft and not furnished such details of investment, the assessee explained that the Assessing Officer erred in appreciating the facts and ignored his submission dated 29/06/2019 wherein he has furnished details of fresh investment and his bank statement. The assessee also furnished the period of his stay in India in F.Y. 2009-10 to 2011-12 and submitted that during his visit, he used to regularly withdraw the cash from ATM for his personal expenditure. 5. The ld. CIT(A) on considering the submission of assessee held that the facts available on record suggest that the assessee could not bring anything on record to support his claim that the mother was mentally unstable and medically depressed and during the period from 2009 to 2011 it is hard to believe that the assessee get the cash idle and not deposited in bank. No prudent man would deposit the idle cash on a singl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 32.00 lacs was deposited in bank accounts during the year under consideration, however, the assessee made only deposit of Rs. 27.50 lacs, the figure of Rs. 32.00 lacs was incorrect. The assessee also explained that during the year under consideration, the assessee redeemed the mutual fund an also invested in mutual fund. The assessee provided details of investment in mutual fund from 09/05/2011 to 27/06/2011 aggregating of Rs. 13,13,303/-. The assessee also furnished bifurcation of details of fresh investment during the relevant financial year from 25/04/2011 to 21/06/2011 aggregating of Rs. 79.50 lacs. All required supporting evidence, name of mutual fund and name of bank account was furnished. In the initial show cause notice, the investment was shown as of Rs. 81.00 lacs however, the assessee made investment of Rs. 79.50 lacs, thus, the figure of Rs. 81.00 lacs was incorrect. In response to fresh show cause notice dated 04/11/2019, the assessee again filed reply dated 19/11/2019 and furnished complete details about his arrival in India and departure from India, details of NRE account and NRO account, type of account including mode of operation. The assessee also furnished the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... draft. We find before ld. CIT(A), assessee again furnished the detail of cash withdrawal from NRE account No. 922025 of Rs. 17.00 lacs and from other NRE account No. 916783 of Rs. 18.80 lacs. The assessee further explained that out of total cash withdrawal of Rs. 35.80 lacs, Rs. 35.00 lacs were kept with her sister Usha Patel for emergency need of their mother. The assessee further explained that out of which Rs. 7.50 lacs were used/spent for the need of mother and remaining Rs. 27.50 lacs were deposited in NRO bank account No. 1220106. We find that the assessee has shown cash withdrawal on redemption of mutual fund on various dates in F.Y. 2009-10, otherwise cash withdrawal was not disputed by assessing Officer. First objection of assessing officer is that the assessee failed to file cash flow statement and other objection of assessing officer was that assessee was using cash deposit for making demand draft. The assessee before the ld. CIT(A), explained that in submission dated 29/06/2019, the assessee already furnished details of all investments worth Rs. 79.50 lacs. We find that all details are available on page No. 24 and 25 of paper book and all investments are made from NRE ..... X X X X Extracts X X X X X X X X Extracts X X X X
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