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17. It is noteworthy that expenses payable of Rs. 23.32 lakhs were shown as on 31/03/2016 whereas the said amount only 9.40 lakhs as on 31/03/2015. It is also noted from the balance sheet that there is increase in TDS payable also from Rs. 12,647/- as on 31/03/2015to Rs.

1,93,151/- as on 31/03/2016.

Page | 3 Assessment Year : 2016-17 4.4. From the submissions made it is seen that no explanation has been given by the appellant as regard the finding of the AO that there was a sharp increase in the expenses payable compared to the earlier year. Despite having adequate opening balance and not enough expenditure as on 01/12/2015 further cash was withdrawn. Similar pattern is also seen in subsequent months where the opening cash balance as on 01/01/2016 was Rs. 15,32,504/-, as on 01/02/2016 Rs. 23,23,354/- and as on 01/03/2016 the same was Rs. 24,71,301/- and ultimately closing balance was Rs. 27,71,301/-. Further, from the cask book it is noted that most of the expenditure in cash has been incurred on account of business promotion, conveyance expenses, telephone expenses etc. When all the facts are seen in totality, i.e., pattern of cash withdrawal as per the cash book, increased expenses payable at Rs. 23.32 lakhs as on 31/03/2016 as compared to Rs. 9.40 lakhs as on 31/03/2015, the fact that percentage of cash deposit vis-a-vis turnover was abnormally high for the year under consideration, sharp decrease in the turnover for F.Y. 2016-17 and also sharp increase in the cash deposited during the F.Y. 2016-17, the findings of the AO have to be upheld. Grounds of appeal nos. 1 & 2 are dismissed."