2015 (8) TMI 658 - HC - Income Tax

Unexplained cash deposits - Unexplained income - ITAT confirmed addition - Held that - The ITAT has in the impugned order returned a finding of fact that the Assessee could not establish that he received agricultural income from carrying on farming activities in the society land. The Assessee has failed to produce any reliable document to explain the cash in hand. - Decided against assessee.

Summary

Issues:
Appeal against ITAT order on addition of unexplained income by AO for assessment year 2008-09.

Analysis:
The case involved an appeal under Section 260A of the Income Tax Act against the ITAT's order for the assessment year 2008-09. The ITAT allowed the Revenue's appeal and set aside the CIT (Appeals) order that deleted the addition of Rs. 24,06,600 by the Assessing Officer as unexplained income. The Assessee's return of income declared total income of Rs. 3,04,713 and agricultural income of Rs. 25 lakhs. The scrutiny was initiated due to cash deposits of Rs. 57,57,000 in the Assessee's bank account. The Assessee attributed the cash to sale proceeds of ancestral property and agricultural produce, along with sales of poplar trees. However, the AO added Rs. 23,57,000 as unexplained cash deposits, finding the explanations unsatisfactory.

The Appellant's counsel referred to agreements on stamp papers for poplar tree sales but failed to produce cash receipts. The ITAT found that the Assessee couldn't prove receiving agricultural income from farming activities on society land. The Court noted that if the land belonged to societies and not the Assessee, the income would belong to the societies. The Assessee's reliance on a Madras High Court decision was deemed unhelpful as no reliable document explained the cash in hand. Consequently, the Court found no substantial question of law in the ITAT's order that required examination.

In conclusion, the appeal and application were dismissed, upholding the ITAT's decision to add the unexplained income.