9911796707
TMI Blog2024 (6) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... sufficient cash with the assessee till the date of search i.e 25.10.2010. The amount found during the course of search is Rs 4,06,700/- which is below the amount of withdrawals. Therefore, we are of the view that the impugned cash cannot be treated as unexplained cash. So far as, argument of the Revenue, that no prudent person will keep a cash for such a long period. We do not find any force because admittedly, it is the case of search and even after search, department has not been able to prove that the cash withdrawals by the assessee has been utilized somewhere else and the impugned cash is generated from some other source. As in the case of Smt. P Padmavathi [ 2010 (10) TMI 1154 - KARNATAKA HIGH COURT] has observed that time gap between ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,700/- was found from the premises of the assessee. During the course of assessment proceedings the AO enquired about the source of this cash. In response the assessee vide his letter dated 21.03.2013, explained that the amount was collected from the members of Zilla Panchayat, in order to arrange a tour for them. The assessee was to arrange tickets and other arrangements for the members of Zilla Panchayat. The Ld AO discarded the submissions of the assessee on the ground that assessee failed to file any documentary evidence to prove his averments Accordingly, the AO added this amount to the returned income of the assessee and framed the assessment. 3. Aggrieved with the order of the AO, the assessee filed appeal before the ld. CIT(A) and r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to AY 2010-11 was about to expire there was sufficient cash with the assessee till the date of search i.e 25.10.2010. The amount found during the course of search is Rs 4,06,700/- which is below the amount of withdrawals. Therefore, we are of the view that the impugned cash cannot be treated as unexplained cash. So far as, argument of the Revenue, that no prudent person will keep a cash for such a long period. We do not find any force because admittedly, it is the case of search and even after search, department has not been able to prove that the cash withdrawals by the assessee has been utilized somewhere else and the impugned cash is generated from some other source. Further Hon ble Karnataka High in the case of Smt. P Padmavathi Vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk, it was not for respondents N'os.1 and 2 to concern themselves with what the assessee did with that money. i.e. whether he had kept the same in his house or utilized the services of a of a bank by depositing the same. The ITO had only two choices before him. One was to reject the explanations not believable for the reason that on his investigation no such pigmy deposit was ever made in the bank. In the alternative he ought to have called upon the assessee-petitioner to substantiate his claim by documentary evidence. Having exercised neither of the choices, it was not. open to the ITO to merely surmise that it would not be probable for the assessee to keep Rs. 15.000/- unutilized for a period of two years. The ITO should have given an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also held against the revenue and in favour of the assessee. 8. Further assessee relied on the judgment of this tribunal in the case of Shambanna Jattappa in ITA Number 556/Bang/2022, dated 28.12.2022, wherein the coordinate Bench has observed as under:- 6.1 The short question before me is with regard to addition of Rs. 3,96,000/- deposited into bank account. According to the AO, the assessee has not explained the source of deposit of this amount to the assessee s bank account. The assessee explained before us that assessee has placed necessary evidence before the lower authorities that assessee having salary income which has been regularly deposited into bank account and also withdrawn from SB account from HDFC Canara banks. The total cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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