Case Law Details
Brief of the Case
In the case of Neeraj Murarka Vs. ITO the Hon’ble Kolkata ITAT held that the fact of cash withdrawals made by assessee, cash balance held by assessee has never been questioned and nor any fact to the contrary has been brought on record. There was sufficient cash balance in the hand of assessee to deposits the cash of Rs.8.60 lakh and that the amount of cash credit could not be included in the total income of the assessee because the inquiry was not properly made.
Facts of the Case
The assessee is an Individual. During the course of Assessment proceedings it was found that the assessee had deposited a sum of Rs. 1 lakh and Rs. 7.60 lakh on 07-03-2007 and 09-03-2007 respectively in Sarawati Co-Op Bank Ltd. The said Bank account was not appearing in the Balance Sheet of the Assessee as on 31-03-2007. The Statement submitted by the Bank showed a Balance of Rs. 1,211.53 in the said account. On being asked assessee as to why balance of 1211.53 held with Saraswat Co-op Bank as on 31.03.2007 was not shown in the balance sheet as on 31.03.2007 and assessee replied that he had written off balance amount of Rs.1211.53 as they have given the application for closing of said account and assessee was not sure of this meager amount back from the bank.
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