The AO held that, assessee had deposited certain amount in his bank account. Assessee explained that he had withdrawn said funds from his bank account four months ago and since a transaction relating to purchase of property did not materialise, he re-deposited funds in his bank account. The AO rejected explanation and added amount deposited in bank account to his taxable income.
On appeal Tribunal held that, there was no instance, reference, argument or evidence to suggest that funds were not available with assessee. There could be no blanket period which could be judicially considered to be a reasonable time for re-depositing funds in bank account. Mere fact that there was a gap of about four months in re-depositing funds by itself would not lead to conclusion that explanation given by assessee was not acceptable. Accordingly the addition was deleted. (AY. 2009 – 2010)