SURESH H. THAKKAR,MUMBAI vs. CIT (A)-45, MUMBAI, MUMBAI

The grievance of the assessee relates to addition of Rs. 6.50 lacs upheld by the ld. CIT(A) in respect of cash paid for purchase of residential flat.

Rival contentions have been heard and record perused. Facts in brief are that the assessment of the assessee was reopened on Suresh H. Thakkar Vs CIT(A)-45, Mumbai getting information from DGIT that the assessee had made cash payment of Rs. 13.00 lacs for purchase of flat and no return of income was filed. A search and seizure action was carried out on M/s Ekta and Bhoomi group by the Investigation Wing of the Department and on the basis of documents found during the search it was alleged that the assessee paid a sum of Rs. 13,00,000/- in cash during March 2010 for purchase of a residential flat. Thereafter the assessee’s assessment was reopened U/s 147 and notice U/s 148 of the Act was served on the assessee. During the assessment proceedings, the assessee submitted day wise cash book and bank statements of saving bank accounts and of proprietory concern highlighting each cash withdrawals pertaining to the cash available of Rs. 13,00,000/- with him as on 11/03/2010 out of total cash balance as on that day of Rs. 15,14,150/- was paid to the builder alogwith source of the same. However, the A.O. did not agree with the assessee’s contention and added Rs. 13.00 lacs U/s 69 of the Act.

By the impugned order, the ld. CIT(A) accepted availability of cash to the extent of Rs. 6.50 lacs and confirmed balance addition.

We have considered the rival contentions and carefully gone through the orders of the authorities below and found from the record that before the lower authorities, the assessee has filed detailed statement of date wise withdrawal from his bank accounts during the F.Y. 2008-09 and 2009-10. We also found that as per the cash statement so submitted, there was a cash balance of Rs. 15,14,150/- as on 11/03/2010, out of total cash balance as on that date of Rs. 15,14,150/-. The assessee had paid cash of Rs. 13.00 lacs to the builder. The lower authorities have doubted the availability of cash on the plea that the cash was withdrawn by the assesee from his bank account in the earlier year and was not available for giving the same to the builder. Neither the A.O. nor the ld. CIT(A) has brought any material on record to suggest that the cash so withdrawn by the assessee was utilized for some other purposes and was not available with him on the date of payment.

In the result, the appeal of the assessee is allowed.