2024 (5) TMI 1362 - AT - Income Tax

Unexplained deposits in joint bank account being maintained by the assessee and his wife and daughter - it is the case of the assessee that all the three persons including the assessee were using the said bank account for banking purpose - Detailed explanation provided on cash sources, including agricultural income, professional income, and sale proceeds - HELD THAT - Assessee submitted details of agriculture land held by each one and also affidavit from the buyer of the agriculture produce. The assessee has also produced registered sale deed as regard the sale of land registered on 15/10/2010, one more sale deed in respect of the other land was also filed before the A.O. In so far as cash being kept with the assessee, the assessee submitted that since the wife of the assessee was suffered from dementia, for the purpose of medical treatment the cash was kept at home for the purpose of convenience. Further, the bank interest income added by the Assessing Officer is not the bank interest but the maturity of NSC. CIT (A) has not considered the above evidence in the right spirit, thereby restricted the relief to the tune of Rs. 2,00,000/- only and confirmed the rest of the addition. Though the Ld. CIT(A) has quoted the detailed submission made by the assesseeMwithout adjudicating and considering the explanations and without any basis, restricted the credit of Rs. 2,00,000/- only, though the assessee has provided proper explanation and the documentary evidence regarding agriculture income. Considering the land holdings of the assessee and his children, affidavit of the persons who have carried out the agriculture operation and the Affidavits of the persons purchased the agriculture produce, should have been considered and the CIT(A) and should have deleted the addition. In our considered opinion, A.O. and the Ld. CIT(A) have committed error in making and confirming the addition in the hands of the assessee. Thus, we find merit in the Grounds of appeal of the assessee, accordingly, the additions made by the A.O. which was confirmed by the Ld. CIT(A) is hereby deleted and the Grounds of Appeal of the assessee are allowed.

Summary

Issues Involved: Appeal against Income Tax Department/National Faceless Appeal Centre order for Assessment Year 2011-12.

Summary:
1. Grounds of Appeal: Assessee challenges Ld. Commissioner of Income Tax (Appeals) for not considering explanations, adding wife and daughter's income to assessee's, and re-adding cash from property sale. Alleges rejection of contentions without examination.

2. Background: Assessee's original income return of Rs. 4,95,070/- questioned due to cash deposit of Rs. 19,80,000/- in 2010-11. Assessment reopened u/s 147, resulting in additions. CIT (A) partially upheld additions, leading to current appeal.

3. Assessee's Argument: Detailed explanation provided on cash sources, including agricultural income, professional income, and sale proceeds. Wife's medical condition cited for cash kept at home. CIT (A) allegedly disregarded evidence, leading to appeal.

4. Department's Response: Departmental Representative supports lower authorities' decisions, seeking dismissal of assessee's appeal.

5. Judgment: Tribunal reviews evidence, finds errors in AO and CIT (A)'s decisions. Assessee's explanations and evidence regarding income sources deemed credible. AO's additions, upheld by CIT (A), are deleted. Assessee's appeal allowed.

6. Conclusion: Tribunal rules in favor of the assessee, deleting additions made by AO and upheld by CIT (A). Judgment delivered on 28th May, 2024.