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II. Direct Taxes Case Laws:
1. Ved
Parkash Vs. Commissioner of Income Tax, I.T.A. No. 235 of 2015
(O&M), Date of Decision: 02.07.2015, Punjab and Haryana High Court
Whether the cash deposit may be considered as income without considering the cash withdrawals from the same bank?
Held No
The AO
noticed a cash deposit in the appellant’s savings bank account of `
11,04,167/-. The amount had been deposited in cash in the appellant’s
bank account. The AO observed that the gross turn-over was only
4,21,855/- and, therefore, the cash cannot be related to the appellant’s
business transactions. This finding was also on account of the fact
that the appellant had not produced any sale/purchase details. The AO,
therefore, made an addition of ` 11,04,167/-. The CIT (Appeals) noted
that the appellant had initially stated that he was not maintaining any
regular books of accounts and later he submitted that the books of
accounts were complete. Only a computerized cash book had been filed
without any bills/vouchers. In these circumstances, the appellant’s case
that he had been maintaining accounts was not acceptable.
The CIT
(Appeals), however, accepted the contention that the AO ought not to
have treated the cash deposit as income without considering the cash
withdrawals from the same bank. The CIT (Appeals), therefore, fairly
granted the appellant relief by directing the AO to make addition of
only peak of the deposits in the bank account after getting the details
from the appellant. These are pure questions of fact which require the
appreciation of evidence. No question of law much less a Substantial
question of law arises in this regard.
(Please click here for judgment)
2. Income Tax Officer Vs. Mrs. Deepali Sehgal, I.T.A. No. 5660/Del/2012, Date of Order: 5.09.2014, ITAT - Delhi
Whether
CIT(A) has erred in law in deleting the addition of Rs. 2438000/- being
unexplained cash deposits in the Saving Bank Ale with HDFC Bank U/S 69A
of the I.T.Act, 1961, since the same being explained out of cash
withdrawn from Saving Bank Account and partnership overdraft account?
Held No.
the AO,
in his remand report could not bring out any fact that the cash
withdrawn from Saving Bank Account and partnership overdraft account was
used for other purpose anywhere else then, 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. The AO rejected
the explanation of the assessee on hyper technical basis which is not
acceptable. On careful perusal of the decisions relied by the Ld. D.R.
we are of the view that the facts of the present case are clearly
distinguishable as in the present case the explanation offered by the
assessee is reliable and acceptable on the touchstone of the prudence of
an ordinary man but merely on the ground that the act of assessee
created huge interest liability on partnership firm does not enable
revenue authorities to consider the cash withdrawn and it deposit to
same bank account after a substantial gap of time, as unexplained income
u/s 69 A of the Act. Hence, we reach to a conclusion that the AO made
addition without any legal and justified reason which was rightly
deleted by the CIT(A). Hence, both the grounds of the assessee are being
devoid of merits and dismissed.
(Please click here for judgment)
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