2022 (8) TMI 526 - AT - Income Tax

Addition u/s 68 - addition of cash deposit made in the bank account as unexplained - HELD THAT - We noted that the assessee has tried to explain the cash deposits made in to the bank i.e., Royal Bank of Scotland to the tune of Rs.12 lakhs in cash. The assessee tried to explain that this Rs.12 lakhs was received as advance by assessee for sale of agricultural land at Thirupullani and the claim was fully supported by agreements. The assessee has received advance from sale of agricultural land at Thirupullani from six persons. On query from the Bench, now the ld.counsel for the assessee could not explain the sources of these persons namely Mrs.Asilallyas, etc., as mentioned above. Neither he could explain whether alleged sale of land by agreements through which these advances were received were fructified or not or the advances were returned back. Since, the assessee could not answer anything, we had no alternative except to confirm the order of CIT(A) confirming the addition. Hence, we dismiss this appeal of assessee.

Summary

Issues:
1. Delay in filing appeal due to Covid-19 pandemic.
2. Addition of unexplained cash deposit in bank account.

Analysis:
1. The appeal was filed 257 days late due to the Covid-19 pandemic. The delay was condoned based on the directions of the Hon'ble Supreme Court, allowing the appeal to be admitted for adjudication.

2. The main issue in the appeal was the addition of a cash deposit of Rs.12,00,000 in the bank account as unexplained income. The assessee claimed the amount was received as an advance for the sale of agricultural land at Thirupullani. However, the AO treated the cash deposit as unexplained since the sale agreements provided were unregistered and lacked details on payments and dates. The CIT(A) upheld the AO's decision, stating that the explanations provided were not satisfactory and did not stand scrutiny. The Tribunal confirmed the CIT(A)'s order as the assessee failed to provide sources for the cash deposits or clarify the status of the alleged land sale agreements, resulting in the dismissal of the appeal.

In conclusion, the Tribunal dismissed the appeal filed by the assessee regarding the addition of the unexplained cash deposit in the bank account, as the explanations provided were deemed unsatisfactory and lacked supporting evidence. The delay in filing the appeal was condoned due to the Covid-19 pandemic, allowing the case to be heard and decided upon by the Tribunal.