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TMI Blog2024 (11) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... this extent by passing a rectification order u/s.154 of the Act noting and agreeing with the fact brought to his notice of the incorrect quantum of cash noted to be deposited by the assessee in one of his bank accounts. This fact was brought to the notice of the CIT(A), but it seems to have not been taken note of by him since his order reveals no reason for confirming the addition made to the tune of Rs.32 lacs despite the AO having reduced it by Rs.13.50 lacs. Therefore, to this extent, we hold that the Ld.CIT(A) has erred in confirming the addition made to the tune of Rs.32 lakhs when the addition ought to have been confirmed only to the extent of Rs.18.50 lakhs. Having said so, we further hold that we do not find any merit in the content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Act, 1961 ( the Act for short) pertaining to Assessment Year (AY) 2017-18. 2. The solitary issue, in the present appeal, pertains to addition to the income of the assessee on account of cash found deposited in his bank account during the demonetization period, the source of which remained unexplained amounting to Rs.32,00,000/-. The ground raised by the assessee is as under: 1. The CIT(A) erred in law and in the facts of the case in confirming the order of the AO in making addition of Rs.32,00,000/- being unexplained cash deposits u/s.69A of the Act. 2.1. The amount of Rs.32 lakhs is noted in the assessment order to have been deposited in cash in the following bank accounts of the assessee: Sr.No. Bank Name Account No. Amount (Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad unjustifiably rejected the cash book presented by the assessee to the revenue authorities explaining the source of cash available with the assessee for depositing in the respective bank accounts. 4. The Ld.DR, on the other hand, contended that all these contentions of the assessee had been duly considered by the Ld.CIT(A) and rejected noting grave discrepancies in the same. He pointed out that before the AO also the assessee has produced the copy of cash book which had been rejected by the AO noting that the assessee had never disclosed any cash balance in any return of income filed in the preceding years. He also pointed out that the Ld.CIT(A) had noted that except for the cash book prepared by the assessee, no documents substantiating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved that the cash flow furnished by the appellant is not substantiated and supported by the books of accounts. As per the observations of the AO, the previous returns filed did not shown any cash in hand as the returns were filed in form 2 3. The appellant seeks to claim benefit of cash withdrawals made in previous years, as old as 01.04.2014 onwards, which are shown in the alleged cash flow statement. During the course of assessment proceedings even though specifically asked by the AO vide shown cause notice dated 14.10.2019, the appellant did not give any reply as to why the amount withdrawn from the bank account was kept as liquid cash for such a long period of time. Even during the appellate proceedings, the appellant has not been able ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .32 lacs despite the AO having reduced it by Rs.13.50 lacs .Therefore, to this extent, we hold that the Ld.CIT(A) has erred in confirming the addition made to the tune of Rs.32 lakhs when the addition ought to have been confirmed only to the extent of Rs.18.50 lakhs. Having said so, we further hold that we do not find any merit in the contentions of the Ld.Counsel for the assessee on the merits of the addition made . Undoubtedly the only manner in which the assessee has explained the source of cash deposit in his bank account is by way of furnishing book/cash flow statement, that too, all entries therein being unsubstantiated. Also the primary source of cash deposited in Bank is attributed to cash withdrawn from his bank account almost four ..... X X X X Extracts X X X X X X X X Extracts X X X X
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