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TMI Blog2017 (12) TMI 1260X X X X Extracts X X X X X X X X Extracts X X X X ..... m agricultural family, the objections of AO and CIT(A) that these moneys are not deposited in bank and there was a gap can be rejected. Thus, the explanation for agricultural income and sale proceeds being a source, as explained before the CIT(A), can be accepted. Addition of gifts - Held that:- Assessee explained that an amount of ₹ 11 lakhs was gifts from three persons. They could not be produced before AO for verification. The sources of gifts can be examined by AO by giving opportunity to assessee to produce the persons before AO or adducing evidence which can be verified/got verified by AO. Therefore, verification of source for gifts of ₹ 11 Lakhs is restored to the file of AO for fresh examination. - I.T.A. No. 753/HYD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uly filed, (ii) past agricultural income of ₹ 6 lakhs earned in the HUF capacity, (iii) agricultural income of ₹ 2,40,000/- of his wife for the last five years, (iv) sale of agricultural land of ₹ 5,89,000/-, (v) gifts of ₹ 11 lakhs received from his relatives and (vi) ₹ 86,000/- from other sources, all aggregating to ₹ 36,17,834/-. From this aggregate figure, the appellant reduced ₹ 6.50 lakhs towards his house hold expenses for five years and claimed that he has explainable sources for the amount of ₹ 29 lakhs treated as unexplained by the Assessing Officer. In support of the above, the appellant has filed (i) copies of statements of total income for the past five years, wherein the agricult ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash in bank account was Rot explained by the appellant. It is simply referring to the sale of lands, the appellant is trying to linkup the sources for the cash deposits made after 17 months. 5.4 The next source explained by the appellant is the past savings out of admitted incomes and admitted agricultural income in the HUF status. However, no evidences for proving the nexus between the past savings and the cash deposits made on three dates during the year were furnished. It is only referring to the admitted incomes and some agricultural income admitted in HUF capacity of last five years, the appellant is trying to explain the sources of cash deposit made during the year. Admittedly, the appellant is a Chemistry lecturer and is admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urces for the cash credits in the bank account and 'has not furnished any cogent evidences. The capital account with an opening balance of around ₹ 18 lakhs was brought out only during the year and even the form in which this capital was held by the appellant during the period was not explained anywhere. As regards the claim of the appellant that the total of the past savings including the current incomes should be considered and deficit should be arrived, it is seen that the appellant has not furnished any reasonable evidences for holding cash of around ₹ 18 lakhs at the beginning of the year. As regards the current sources, it can be 'seen that the Assessing Officer has adopted the peak cash credit method, a method whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... employee but private employee giving chemistry tuitions and basically agro based. He submitted that assessee has agricultural incomes which are declared and also sold lands in earlier years. Regarding the contention that assessee had not deposited the amounts in bank, it was submitted that the place from which assessee hails is a remote part of Khammam District and the AO as well as the CIT(A) accepted that assessee has opened the bank account only on 09-03-2009 and assessee is transacting in cash only all along. Only for the purpose of investment in a company, the account was opened and cash available including amount of gifts were deposited in the said bank account. It was submitted that assessee will produce the parties who gave gifts to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification. Ld.CIT(A) could have got them examined before deciding the issue against assessee. I am of the view that the sources of gifts can be examined by AO by giving opportunity to assessee to produce the persons before AO or adducing evidence which can be verified/got verified by AO. Therefore, verification of source for gifts of ₹ 11 Lakhs is restored to the file of AO for fresh examination. Needless to say that assessee should be given due opportunity in the proceedings. To that extent, order of AO/CIT(A) is set aside and addition of ₹ 11 Lakhs is restored to the file of AO for necessary action. The grounds are allowed accordingly. 8. In the result, appeal of assessee is treated as partly allowed for statistical purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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