| The Tax Publishers2019 TaxPub(DT) 8332 (Sur-Trib) INCOME TAX ACT, 1961
Section 251
Where bank account of assessee was showing cash deposits and simultaneously cash withdrawals within a day and entire cash deposits could not be treated as unexplained as there was debit and credit on both account, therefore, peak balance as on 18- 09-2019 was at Rs. 1,68,025 accordingly addition of Rs. 40,81,465 was restricted to peak balance of Rs. 1,68,025.
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Appeal [CIT(A)] - Enhancing addition under section 251(10) - Cash deposited in Bank accounts treated as alleged unexplained cash deposits -
Assessee filed an appeal before the Tribunal on the ground that CIT(A) had erred in enhancing the addition to the tune of Rs. 40,81,465 under section 251(10) on account of cash deposited in Bank account treated as alleged unexplained cash deposits. Held: Bank account of assessee was showing cash deposits and simultaneously cash withdrawals within a day. Therefore, entire cash deposits could not be treated as unexplained as there was debit and credit on both account. It was further discernable from pattern of cash deposit as reflected from the bank account that these deposits were simultaneously being withdrawn. The peak balance as on 18- 09-2019 was at Rs. 1,68,025 accordingly the addition of Rs. 40,81,465 was restricted to peak balance of Rs. 1,68,025. Accordingly, appeal was partly allowed.
REFERRED : CIT v. Lakhdhir Lalji (1972) 85 ITR 77 (Guj.) : 1972 TaxPub(DT) 0306 (Guj-HC) Prativa Naresh Chidipal v. ITO [ITA No. 1150/AHD/2014 dated 10-08-2018] Patel Prahladbhai Harjivanbhai v. ITO [ITA No. 1347/AHD/2012, ITAT Ahmedabd 'C' Bench, dated 15-03-2013]
FAVOUR : Partly in assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 271(1)(c)
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