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TMI Blog2017 (5) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... shown only ₹ 4,10,000 as deposit in the said Bank on 22.9.2008 as out of the flow of cash in the cash flow statement, but the assessee has not shown the source of cash deposited of ₹ 5.00 lakhs on 30.06.2008 and ₹ 2.00 lakhs on 26.08.2008 as outflow in the cash flow statement. AO, therefore, treated the sum of ₹ 7.00 lakhs as unexplained investment and brought it to tax u/s 69 of the Act which was confirmed by the CIT (A) and the assessee is in appeal before us by raising grounds of appeal Nos 3 & 4. Even before us also, the learned Counsel for the assessee reiterated the submissions made before the authorities below, but has not been able to substantiate his contention with any evidence. As the AO and the CIT (A) have verified the cash flow statement and found that the sources for the cash deposits shown as cash withdrawal are not correct, we do not see any reason to interfere with their orders. Income from other sources - contention of the assessee that a sum of ₹ 4.00 lakhs was received from his father who is the owner of vast agricultural land - Held that:- we are inclined to accept the assessee’s contention as the transaction is between a fath ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For The Revenue : Smt. U. Mini Chandran, DR ORDER Per Smt. P. Madhavi Devi, J.M. This is assessee s appeal for the A.Y 2009-10. In this appeal, the assessee has raised the following grounds of appeal: 1. On the facts and in the circumstances of the case the order of the Commissioner of Income Tax (Appeals)-V, Hyderabad, dismissing the appeal of the appellant is erroneous, illegal and unsustainable in law. 2. The CIT(A) erred in sustaining the addition of ₹ 44,50,000 made by the AO as unexplained deposits in bank account in spite of the fact that the same were stated to be from known sources. 3. The CIT(A) erred in sustaining the addition of ₹ 6,50,000 made by the AO as unexplained deposits in the DCB Bank. 4. The CIT(A) erred in sustaining the addition of ₹ 7,00,000 as unexplained investment in the Indian Bank, Nalgonda as unexplained deposits. 5. The CIT(A) erred in sustaining the addition of ₹ 2,00,000 received by the appellant from his father. The CIT(A) failed to appreciate that the AO has not called for any explanation in respect of the above amount and at any rate was unjustified in expecting evidence with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... served that the assessee has not furnished any confirmation letters from 11 agriculturists from whom he is stated to have received the sale amount of agricultural produce. The AO was not convinced with the assessee s contention that these 11 agriculturists had given their sale proceeds to the assessee for depositing which was subsequently been withdrawn by way of cash withdrawals. He thus made an addition of ₹ 44,50,000 as unexplained investment u/s 69 of the I.T. Act and brought it to tax under the head income from other sources . Aggrieved, the assessee preferred an appeal before the CIT (A) who confirmed the order of the AO holding that the assessee has failed to substantiate the assessee s claim that the deposits were given to him by the agriculturists. He refused to accept the assessee s contention in the absence of any confirmation letters from any of the parties. Aggrieved by the order of the CIT (A), the assessee is in appeal before us. 4. The learned Counsel for the assessee Shri A.V. Raghuram reiterated the submissions made before the authorities below and submitted that the assessee was in chit fund business and was arrested by the Police in view of the complai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatement of the DCB and found that there is a deposit of ₹ 6,50,000 on the same day i.e. 24.06.2008 which was subsequently withdrawn and that before the said deposit, the credit balance in the a/c is only ₹ 4,384. Since the assessee was not able to explain the credit of ₹ 6.50 lakhs on 24.06.2008, the AO had treated it as unexplained investment under the provisions of section 69 of the Act and added it to the income returned under the head income from other sources . The CIT (A) confirmed the order of the AO as the assessee did not submit any specific source for this deposit. Similarly with regard to the sources of deposits in the cash flow statement, the assessee had shown only ₹ 4,10,000 as deposit in the said Bank on 22.9.2008 as out of the flow of cash in the cash flow statement, but the assessee has not shown the source of cash deposited of ₹ 5.00 lakhs on 30.06.2008 and ₹ 2.00 lakhs on 26.08.2008 as outflow in the cash flow statement. AO, therefore, treated the sum of ₹ 7.00 lakhs as unexplained investment and brought it to tax u/s 69 of the Act which was confirmed by the CIT (A) and the assessee is in appeal before us by raising gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agricultural income of ₹ 7,25,000 i.e. nearly ₹ 9,15,000 from which the assessee has explained that ₹ 9.00 lakhs was received from his wife. Though the assessee s wife is shown to have sufficient income, but it cannot be accepted that the entire income has been given to the husband which is shown as source of cash deposits. Therefore, we accept only a sum of ₹ 8.00 lakhs as a loan from her and the balance addition is confirmed. 11. As regards Ground No.8 against the addition of ₹ 2,83,000, the assessee had claimed it to be agricultural income and has also filed certain bills reflecting the sale of agricultural produce. Further, we find that none of the authorities below have verified the assessee s contention on this issue. In view of the same, we deem it fit and proper to remand the issue to the file of the AO with direction to look into the assessee s land holdings, the nature of the crops grown and whether they coincide with the sale bills filed by the assessee and reconsider the issue in accordance with the law. 12. In the result, assessee s appeal is partly allowed for statistical purposes. Order pronounced in the Open Court on 28th April ..... X X X X Extracts X X X X X X X X Extracts X X X X
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