SAMIR P MOMIN,MUMBAI vs. ITO WD 24(3)3, MUMBAI

Order u/s.254(1)of the Income-tax Act,1961(Act) लेखा सद�य सद�य राजे�� राजे�� केकेकेके अनुसार अनुसार PER RAJENDRA, AM- लेखा लेखा लेखा सद�य सद�य राजे�� राजे�� अनुसार अनुसार Challenging the order 17.04.2013 of CIT-34,Mumbai the assessee has filed the present appeal. Assessee,an individual,filed his return of income on 26.08.2008,declaring income of Rs.1,43, 992/-.The Assessing Officer(AO)completed the assessment on 27.12.2010,u/s.143(3) of the Act, determining the income of the assessee at Rs.19,01,992/-. 2.First effective ground of appeal is about confirming of an addition of Rs.10.53 lakhs to the total income of the assessee.During the assessment proceedings,the AO found form the AIR information that the assessee had deposited Rs.17.58 lakhs in his bank accounts.He directed the assessee to explain the sources of deposits.It was contended before him that impugned amount was borrowed from various persons for the purpose of obtaining of U S Visa.As per the AO the assessee did not produce any evidence in his support.He held that cash deposits made by the him had to be treated as unexplained cash credit u/s.68 of the Act. 3.Aggrieved by the order of the AO,the assessee preferred an appeal before the First Appellate Authoirty(FAA).Before him,it was argued that the assessee had deposited Rs.10.53 lakhs in the bank, that the AO had ignored the cash withdrawal made by the assessee,that he had taken temporary loan from 19 persons,that the opening balance was not considered by the AO,that peak of the cash deposit worked out to Rs.3.85 lakhs.After considering the assessment order and the submissions of the assessee,the FAA held that the assessee had deposited Rs.10.53 lakhs and not Rs.17.53 lakhs in his bank account during the year under appeal,that the AO had no evidence that the assessee had deposited Rs.17.53 lakhs.He deleted the addition to the extent of Rs.7.05 lakhs.He further held that between 17.04.2007 and 24.04.2007 the assessee had withdrawn cash of Rs.6.02 lakhs,that there was negative cash balance of Rs.2.17 lakhs on 14.04.2007,that the withdrawals were more than deposits,that the argument of re-deposit of cash could not be accepted.Finally,he confirmed the addition of Rs.10.53 lakhs.

ITA/7327/Mum/2013,Samir P-AY.08-09