9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 712 - AT - Income TaxUnexplained deposits made in assessee s Bank Account - As argued cash withdrawn from the same Bank Account on prior dates was available with the assessee for redeposit in the same Bank Account - HELD THAT - The benefit of cash withdrawn of ₹ 15,50,000/- on 22.05.2008 earlier from the date of deposit in the bank on 13-06-2008 has to be allowed to the Assessee unless the AO or the Ld. CIT (A) is able to show that the cash so withdrawn was spent elsewhere. It is discernable from the written submission of the assessee that the cash of ₹ 15,50,000/- was withdrawn 21days earlier by him on 22.05.2008, to the date of deposit in the bank on 13-06-2008. The AO/CIT(A) had led no evidence to show that the cash withdrawn by him had been spent and was not available for redeposit. In view of that the finding of the Ld. CIT(A) regarding allowed claim of the benefit to the tune of ₹ 4,45,000/- only out of the cash withdrawal of ₹ 15,50,000/- on 22.05.2008 is legally not justified. CIT(A) ought to have brought on record evidence to show that the balance cash of ₹ 11, 05000/- out of the total so withdrawn cash of ₹ 15,50,000/- was spent elsewhere. Thus in the light of facts of the assessees ownership of agricultural land and 33 buffaloes, the agricultural income shown at ₹ 6,50,000/- is quite reasonable and as such, accepted. Thus, the appellant assessee gets further relief of ₹ 2,50,000/- on account of agricultural income. Further, the remaining balance cash deposit of ₹ 2,73,004/- 16,28,004 13,55000 (11,05000 2,50000) can be allowed as explained as the personal saving out of agricultural income to the assessee, in the absence of any cogent evidence brought on record by either of the lower authorities to prove otherwise. Thus, the appellant assessee claims to have deposited ₹ 16,28,004/- out of his savings from agriculture income, sale of live stocks (33 buffalos) stands explained. - Decided in favour of assessee.
Issues Involved:
1. Confirmation of the addition of ?16,28,004/- as unexplained deposits in the assessee's bank account. 2. Credit for cash withdrawn from the same bank account on prior dates. 3. Credit for past savings from agricultural income. Detailed Analysis: Issue 1: Confirmation of the Addition of ?16,28,004/- as Unexplained Deposits The appeal concerns the confirmation of an addition of ?16,28,004/- made by the Income Tax Officer on account of alleged unexplained deposits in the assessee's bank account. The assessee, an agriculturist engaged in dairy farming, claimed that the deposits were from savings, sale of livestock, and sale of agricultural land. The assessment was initially conducted by the Income Tax Officer Ward-5, Phagwara, and later transferred to Nakodar, resulting in an addition of ?51,37,000/- as unexplained deposits. Issue 2: Credit for Cash Withdrawn from the Same Bank Account on Prior Dates The CIT(A) considered the evidence and allowed credit for ?35,08,996/- out of the total deposits, including amounts from the sale of land, livestock, and partial cash withdrawals. However, the CIT(A) did not give full credit for cash withdrawals, only allowing ?4,45,000/- out of ?15,50,000/- withdrawn on 22-05-2008. The Tribunal found this unjustified, stating that unless the AO or CIT(A) could show that the withdrawn cash was spent elsewhere, the full amount should be credited. Issue 3: Credit for Past Savings from Agricultural Income The CIT(A) allowed only ?4,00,000/- out of ?6,50,000/- claimed as agricultural income, leaving ?2,50,000/- unexplained due to lack of corroborative evidence. The Tribunal, considering the ownership of agricultural land and livestock, found the agricultural income of ?6,50,000/- reasonable and accepted it as explained. Consequently, the remaining balance of ?2,73,004/- was also allowed as personal savings from agricultural income, making the total deposits of ?16,28,004/- explained. Conclusion: The Tribunal concluded that the addition of ?16,28,004/- confirmed by the CIT(A) was unjustified and deleted the addition. The appeal by the assessee was allowed, giving full credit for the deposits as explained by the sources presented. Order: The appeal of the assessee is allowed, and the order was pronounced in the open court on 16.08.2021.
|
