9911796707
TMI Blog2025 (4) TMI 1612X X X X Extracts X X X X X X X X Extracts X X X X ..... erred in upholding action of Assessing Officer in computing demand pertaining to addition under Section 68 of the Act after applying provisions of Section 115BBE of the Act when such provisions of the Act are not on statute on the date of depositing cash in bank account. Accordingly, Ld. AO has erred in invoking the provisions of section 115BBE as if it is in the statute w.e.f. 01.04.2016 though second amendment Act enhancing rate of income tax and surcharge was dated 15.12.2016. 4. The appellant craves leave to add, alter, amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal." 3. The brief facts of the case are that the assessee filed return of income on 17-03-2018 declaring total income of Rs.10,24,660/-. The case of the assessee was selected for limited scrutiny on the issue of "large cash deposits compared to returned income". The assessee is an individual and is a Director in Jenis Impex Private Limited. During the assessment proceedings, the Assessing Officer observed that assessee had deposited cash amounting to Rs.60,07,000/- in his bank account during the impugned year under consideration. The Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash, which ultimately proves that assessee was not having any cash on hand. Otherwise there was no necessity to withdraw such small amount of cash that too regularly through out two years. In this regard, assessee has also failed to reconcile its cash on hand with withdrawal from bank account. * The withdrawals are also made continuously in one or two day interval. If at all assessee was having big cash' on hand there was no necessity to withdraw such small amount consecutively. This raises big doubt on the genuineness of opening cash balance. * The assessee has also failed to submit any submission regarding regular household expense and further- reconcile it with bank withdrawal in two consecutive years i.e. F Y 2015-16 and 2016-17. Despite having huge balance assessee has not incurred any cash expense. It appears that assessee has shown all cash withdrawals just to prove the source of huge cash deposited in bank. * It is seen from the cash book furnished for two years that not a single rupee has been paid for house hold requirements. In view of the above it is evident that assessee has failed to prove cash deposit in its. bank account. Therefore, amount of Rs. 60,07, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent in M/s Jenis Impex. This opening cash balance was utilized within a period of 45-50 days, and not after a long duration, as alleged by the Ld. AO. To substantiate this, the Counsel for the assessee submitted copies of the cash book and bank statements for the Assessment Years 2016-17 and 2017-18 in the paperbook submitted before us. Further, it was submitted that there is no prescribed time limit under any Act for redepositing cash. It was submitted that the onus lies on the Ld. AO to prove that the opening cash in hand was used elsewhere. However, the Ld. AO has failed to bring any evidence on record to substantiate the claim that the cash was utilized elsewhere. Instead, the additions were based merely on a presumption that no one would keep cash for an extended period, and that that the cash was used elsewhere by the assessee and that the deposit in the bank account came from unaccounted sources. Regarding the AO's allegation that the assessee has not incurred any cash expenses, the Counsel for the assessee submitted that this observation was made without proper verification of the records. The Ld. AO did not examine the cash book submitted during the assessment proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opening balance declared by the assessee in such cash book, which raised doubt as regards to the genuineness of such cash book, secondly, if the assessee was having substantial cash in hand amounting to Rs.60 lakhs approximately, there was no justification for further/regular cash withdrawals and the burden was on the assessee to substantiate as to why the assessee was regularly withdrawing cash from his bank account when he was having substantial cash in hand and thirdly, the assessee has shown a meagre cash expenditure towards household expenses for Financial Year 2015-16 and 2016-17, which further supports that the cash book furnished by the assessee was non-genuine. However, it may be noted that despite the above points oted by the Department, it has not been disputed that the assessee had made regular withdrawals from his bank account, which as per the assessee was the source of cash deposits in his bank account. As regards the contention of the assessing officer that the assessee had shown a meagre household expenses the Financial Year 2015-16 and 2016-17, the counsel for the assessee pointed out that this is factually incorrect and on this issue, the Tax Authorities have fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank and there was no findings by lower authorities that cash available with assessee was invested or utilised for any other purpose, cash so deposited could not be treated as unexplained money under section 69A of the Act. In the case of Jaspal Singh Sehgal 83 taxniann.com 246 (Mumbai - Trib.), where the assessee submitted detailed cash summary showing inflow and outflow of cash for relevant year, in absence of any materials to show that cash withdrawn was utilised elsewhere by assessee, benefit of cash withdrawn by assessee from bank account against amount of cash deposit into bank should be given. In the case of Smt. Krishna Agarwal v. ITO in IT A. No. the ITAT held that mere time gap between withdrawals and deposits cannot be the reason for alleging undisclosed income. In the case of ITO v. Deepali Sehgal I.T.A .No.-5660/Del/2012 it was held that merely because there was a time gap between withdrawal of cash and its further deposit to the bank account, the amount can not be treated as income from undisclosed sources u/s 69 of the Act in the hands of the assessee. 7. Accordingly, looking into the instant facts and the explanation provided by the assessee, along-with supporti ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
