Case Law Details
ACIT Vs Siddhartha Bhargava (ITAT Kolkata)
The issue under consideration is whether Cash deposits in bank account held as unexplained u/s 68 is justified?
During the assessment proceedings, the assessee had produced bank account of the assessee in Punjab National Bank (PNB) and HSBC. On verification of the bank accounts, it was found that there was cash deposit of Rs. 60,18,000 in PNB and Rs. 10,98,000 in HSBC account for the year under consideration. When confronted, the assessee submitted that the assessee was having cash in hand for purchase of a plot of land at New Delhi and he has withdrawn cash from time to time from his own savings bank account and since the purchase of land could not materialize, the amount was deposited back in its bank account.
On examination of cash flow statement for the year under consideration, as also for earlier two years and cross verifying it with entries in bank statements, it was evident that entries were recorded in disclosed bank accounts of assessee which showed that sufficient cash withdrawals were made by assessee from his bank account to cover impugned cash deposit and these deposits were made out of cash balance brought forward from earlier year. Accordingly, addition made by AO could not be sustained.
In the result, the appeal of the revenue is dismissed.
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