9911796707
|
Home
Issues involved: Appeal against deletion of addition on account of cash deposits in banks during assessment year 2006-07.
Summary: The appeal was filed by the revenue challenging the deletion of addition made on account of cash deposits in two banks by the assessee. The AO had added unexplained cash credits of &8377; 3,65,000/- and &8377; 25,47,000/- deposited in SBM and Axis Bank respectively, along with interest. The CIT(A) granted relief to the assessee after considering a remand report and additional evidence. The revenue opposed this decision, but the ITAT upheld the CIT(A)'s findings. The AO had noted the cash deposits in the two banks and considered them unexplained credits due to lack of substantiated income from agricultural activity during assessment proceedings. However, the CIT(A) admitted additional evidence, including details of agricultural income, which the assessee was unable to present before the AO due to reasonable cause. The assessee owned 18 acres of agricultural land since 1991, cultivated by relatives who confirmed providing cash to the assessee annually. The cash deposits in the banks were explained as part of this agricultural income accumulation, supported by bank statements and cash flow details. The mutual fund investments were funded from these bank accounts, which were not disputed by the AO. Therefore, the CIT(A) rightly directed the deletion of the addition after reviewing the remand report and evidence. Ultimately, the ITAT dismissed the revenue's appeal, upholding the CIT(A)'s decision. The order was pronounced on 30-12-2009.
|
