Shambhu Dayal,Kota vs Ito, Ward -2(2), Kota on 21 November, 2024
"Considered the rival submissions and perused the material facts on record. The
assessee has deposited Rs. 34.70 lakhs during this AY and there is sufficient cash
available in his possession as per the cash book and Wealth Tax return submitted
by the assessee. The mute question before us is whether the cash deposited was
coming out of the cash available with the assessee, which was kept by him for last
two years. It was not brought on record why he has withdrawn so much of money
and what made the assessee to keep such huge money in hand. But, on record,
submitted by the assessee, we find that he had sufficient money. Even the AO
could not bring any proof that the assessee has in fact utilized or applied the cash
withdrawn two years back, except making a remark that there is no possibility of
keeping such amount by the assessee being a NRI. He has not brought on record,
why he cannot keep so much of cash in hand and no contrary findings were given
by him against the submissions of assessee. AO has made the addition merely on
conjectures/surmises/suspicion and no proper reasons were given why he cannot
keep the cash in hand except the remark of being an NRI In our view, the Hon'ble
Supreme Court in the case of Dhakeswari Cotton Mills Ltd. (supra) has held that
the AO cannot complete the assessment purely on guess and without any
reference to evidence or any material at all.