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TMI Blog2014 (8) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and placed on record - The second addition was deleted by CIT(A) on the basis that the addition is made in the hands of the assessee on protective basis and the same was added on substantive basis in the hands of the wife of the assessee Smt. Sneh Lata Gupta - the Will of Mama of the assessee Shri Shyam Lal Garg was produced before the AO - the Will was rejected by the AO on suspicion alone without giving any concrete reason - Decided against Revenue. Unexplained agricultural income – Bonafide of agricultural operations not proved – Held that:- The assessee has submitted six yearly "Khatauni" regarding land holding of the assessee, it is noted by CIT (A) that the assessee owns land of about 4.89 hectare - the assessee owns a tractor which is exclusively used for the purpose of carrying on agricultural activities - the agricultural income has also been accepted by the Department from year to year – order of the CIT(A) is upheld – Decided against Revenue. - ITA No. 600/LKW/2010 - - - Dated:- 28-7-2014 - Shri Sunil Kumar Yadav And Shri A. K. Garodia,JJ. For the Appellant : Shri Manoj Kumar Gupta, CIT, D.R. For the Respondent : Shri Ashwani Kumar, FCA Shri Sudhind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on for assessing the income at ₹ 70,42,757/- as against net profit as per Special Audit Report of ₹ 1,75,768/-, the Assessing Officer has made various additions u/s 68 for various loans claimed to have been received from various persons such as Jasraj Finance, Smt. Kavita Agarwal, Shri Binod Kumar Poddar, Shri Avinash Khandelwal, M/s Raghav Agarwal Benificiary Trust, Pawan Kumar Agarwal etc. on the basis that the assessee could not satisfy the requirement u/s 68 of the Act in respect of these cash credits and the Assessing Officer also disallowed consequential interest payments on these cash credits. Being aggrieved, the assessee carried the matter in appeal before the CIT(A) who has deleted these additions and now the Revenue is in appeal before us. 4. Learned D.R. of the Revenue supported the assessment order. He also submitted that the assessee could not establish the creditworthiness of these loan creditors and therefore, the order of CIT(A) on this issue should be reversed and that of the Assessing Officer should be restored. 5. As against this, Learned A.R. of the assessee supported the order of learned CIT(A). 6. We have considered the rival submissions. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has been examined by AO and same is verifiable by him. Under the circumstances and as per explanations filed by the appellant (noted above in Para 19/20 of this order), it is held that the credit entries of ₹ 24,03,895/- is explained within the meaning of the Income Tax Act as also after considering the remand report. Hence, the AO is directed to delete the addition of ₹ 24,03,895/-. The AO failed to prove the nexus between the borrowed fund and given advances to M/s Yog International Pvt. Ltd. and M/s Oil Emporium (Proprietorship concern), these advances were given by the appellant in his individual capacity whereas the borrowed funds were utilized in his proprietorship concern. There is no nexus to prove between the borrowed funds and the advances given, therefore, the AO is directed to delete the addition of ₹ 1,09,352/-. The deposit of ₹ 5 lacs received from Shri Avinash Khandelwal is accepted in the hands of the appellant, therefore, interest of ₹ 40,192/- paid to him is treated as allowed. Thus, Grounds No. (i)(b), (i)(c), (i)(d), (i)(e), (i)(f) (i)(k) of appeal are allowed. 8. From the above Para from the order of CIT(A), we find that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing on page No. 27 of his order and for the sake of convenience, the same are reproduced below: 29. The appellant has contested the addition of ₹ 19,06,192/- and ₹ 5,38,031/- as per Ground No. (i)(m) (i)(n) of appeal. In this respect, the appellant has filed detailed explanation/working as noted in para-19(m) of this order. The appellant has also argued that he has received jewellery through Will of late MAMA Shri Shyam Lal Garg. 30. The notarized copy of Will and a few marriage photographs has also been filed and placed on record. These documents have not be controverted by AO in remand report, and also are relevant material on this issue. Considering the facts of the case and judicial pronouncement in the case of Prakash Chand V/s Dy. CIT 95 TTJ 409 (Chd.) where it was held that Adhoc addition made by AO could not be sustained as the same was made without any basis. The AO has not pointed out that any jewellery found during the search was unexplained the addition made by AO is without basis, hence this decision is applicable. No comments are available from AO on this issue as contested and explained by appellant. 31. Hence, in view of explanations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income without appreciating the facts that the assessee has neither proved the bonafide of agricultural operation nor computed the agricultural income as provided in Part IV of Finance Act, 2005. 14. Learned D.R. of the Revenue supported the assessment order whereas Learned A.R. of the assessee supported the order of learned CIT(A). 15. We have considered the rival submissions. We find that this issue was decided by CIT(A) as per Para No. 24 on page No. 26 of his order and for the sake of ready reference, the same is reproduced below: 24. The appellant has contested addition of ₹ 1,54,383/- relating to unexplained agricultural income. The appellant has submitted six yearly Khatauni which is record of land holding in the revenue records. The copy of such Khatauni filed shows that the appellant owns land of about 4.89 hectare as submitted vide letter dated 12.6.2008 which is placed on record. It was also submitted that the appellant owns a tractor which is exclusively used for the purpose of carrying on agricultural activities . The agricultural income has also been accepted by the Department from year to year. The necessary documents of Intekhab Khasra which i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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