9911796707
TMI Blog2025 (1) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... wals and bank account for the past four years are placed on record. Withdrawal during the year under consideration itself and earlier year is around ₹ 25 lakh. The assessee has given reasonable explanation along with documentary evidence to explain the cash given to M/s. Wasankar Group. Thus, we are of the opinion that ₹ 15.50 lakh stands reasonably explained by the assessee considering withdrawals from the bank account and documentary evidences placed on record. Notice issued under section 148 - We find that the AO had issued notice under section 148 of the Act on mere information of deposit of cash with M/s. Wasankar Group. No verification has been made by the Assessing Officer before issuance of such notice to derive belief o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .O, at Rs. 15.50 lacs on account of unexplained investment. 4) The learned CIT(A) ought to have held that investment with Wasanker Group stands fully explained considering the cash flow statement and bank statement submitted by assessee. 5) Addition sustained at Rs. 13 lacs is unjustified and unsustainable on the principles of absence of real income in the case of assessee as entire investment itself is lost. 6) The learned authorities ought to have held that cash withdrawals available from bank were available to explain the transaction with Wasankar Group and no addition for unexplained investment ought to have been made at the hands of assessee. 7) The assessee denies liability to pay interest u/s 234A and 234B of I.T. Act 1961. Without p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of ₹ 15.50 lakh as unexplained investment within the mean of section 69 r/s section 115BBE of the Act. 4. On appeal, the learned CIT(A) partly allowed the assessee s appeal by sustaining addition of ₹ 13 lakh on account of unexplained investment. The relevant decision of the learned CIT(A) at Para 8 of his order is reproduced below: 8. Ground Nos. 2,3 and 4 The appellant has stated that the AO has not found that cash withdrawals from bank are utilized elsewhere and are not given to Shri Wasankar Group Company as claimed, but the appellant has not discharged onus cast upon him by the AO to satisfactorily explain the nature and source of money for investment in a private company and link the same with past withdrawals was docu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that it is settled proposition of law that provisions of section 69 of the Act are not mandatory. Explanation adduced in the case of the assessee is reasonable. The assessee has no source of activity other than salary income from which the assessee could be said to have derived any undisclosed income. The Assessing Officer did not bring any evidence on record to prove that any other activity was being carried out by the assessee from which any undisclosed income could be derived. The learned Counsel, in support of his arguments, relied on the judgment of the Hon'ble Supreme Court in CIT v/s Smt P.K. Noorjahan, [1990] 237 ITR 570 (SC). The learned Counsel further argued that the deposit with M/s. Wasankar Group, has been lost and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of notice u/s 148 of I.T. Act 1961. The addition made in the assessment framed at ₹ 15.50 lakh and sustained by the learned CIT(A) at ₹ 13 lakh is unjustified and unsustainable considering the fact and evidence on record. The details of withdrawals and bank account for the past four years are placed on record at Page 16 17 of the Paper Book. Withdrawal during the year under consideration itself and earlier year is around ₹ 25 lakh. The assessee has given reasonable explanation along with documentary evidence to explain the cash given to M/s. Wasankar Group. Thus, keeping in view the overall facts and circumstances of the case and the case laws relied upon in support of the arguments made by the learned Counsel for the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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