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TMI Blog2017 (7) TMI 912X X X X Extracts X X X X X X X X Extracts X X X X ..... explain the non disclosure of the said bank account as ignorance of law or that he was not conversant with the intricacies of accountancy or tax proceedings. However, it is also a fact that the said bank account contains both deposits as well as withdrawals. It is an accepted principle that when the assessee is unable to explain the deposits in a particular bank account, the entire deposits cannot be added to the total income and only the peak credit has to be made when there are both cash deposits and cash withdrawals. In the instant case admittedly, there were both cash deposits as well as cash withdrawals on various dates. Therefore, the ld. CIT(A), in our opinion, was fully justified in sustaining the peak credit value for the addition u/s 69A of the Act. Accordingly, the same is upheld. Appeal filed by the assessee is partly allowed - ITA No. 326 /DEL/2013 And ITA No. 1357 /DEL/2013 - - - Dated:- 24-3-2017 - SHRI R.K. PANDA ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER For The Assessee : Shri K. Sampath, CA Shri Raj Kumar, CA For The Revenue : Shri Umesh Chand Dubey, Sr. DR ORDER PER R.K. PANDA, ACCOUNTANT MEMBER:- These are cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount and confirmatory letter from the persons who were claimed to be the persons from whom such deposits were attributed to. 4. It was submitted by the assessee that he is principally engaged in agricultural activities and he is not aware of taxation provisions and their implications. He is not commercially and technically literate to provide details of bank transactions as required by the A.O. He does not maintain books of accounts like other industrialist and businessman. It was also explained that for obtaining VISA, the assessee had to maintain his bank balance in the bank account as per the guidance of travel agents. These borrowings were subsequently returned also. The assessee was at no point of time the owner of these funds. It was further submitted that the assessee does not remember and is not having any details of the persons who had given funds for deposits in the bank account. The assessee also gave details of opening balance, total deposit made and total withdrawal, closing balance, maximum balance and average daily balance. 4.1 However, the A.O was not satisfied with the explanation given by the assessee. He observed that the assessee is a regular income tax pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the contention of the assessee that the withdrawals made by the assessee from time to time could have been used for making deposits again and, therefore, it is worthy of consideration. From perusal of bank statement of PNB, Khatim, he observed that the largest available balance as on 05.11.2008 is ₹ 18,51,368/-. For the purpose of maintaining a proportion and balance in the action of the A.O, he took this amount as the peak credit value for addition u/s 69A of the Act as against ₹ 78,40,770/- done by the A.O. He also directed the A.O to tax the various interest amount credited in the bank account. He accordingly directed the A.O to add only ₹ 18,51,368/- and the interest amount as against the amount of ₹ 78,40,770/- many by him. Against this part relief given by the ld. CIT(A), the assessee as well as the department are in appeal before the Tribunal. 7. The ld. Counsel for the assessee strongly objected to the order of the ld. CIT(A) in sustaining the addition of ₹ 3 lakhs as well as theopening balance of ₹ 18,51,368/-. Referring to para 2 at page 1 of the assessment order, he drew attention of the Bench to the agricultural land held by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the ld. CIT(A) be set aside. 9. We have considered the rival arguments made by both the sides, perused orders of the A.O and the ld. CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. So far as addition of ₹ 3 lakhs is concerned, we find the same was added by the A.O on account of cash deposit made by the assessee on 6.12.2008 in his SB Account maintained with State Bank of Patiala, Khatim. Out of total cash deposits of ₹ 4,29,000/-, it was explained by the assessee that the same relates to sale of agricultural produce of ₹ 2,38,500/- and ₹ 2 lakhs returned back from earlier advance made to a farmer friend. However, from the documents produced by the assessee, the A.O found that agricultural receipt in the form of 6R only contained ₹ 1,29,600/- related with the assessee Shri Jailly Goraya. He, therefore, gave credit to this extent and made addition of ₹ 3 lakhs which has been upheld by the ld. CIT(A). Although it is the argument of the ld. AR that no addition can be made since the entire income is from agriculture, we find no merit in the same. From the copy of ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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