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TMI Blog2018 (6) TMI 1120X X X X Extracts X X X X X X X X Extracts X X X X ..... O for fresh adjudication as per the provisions of law and to verify whether the assessee has offered the income on such investments on receipt basis. Thus the ground of appeal filed by the assessee is allowed for statistical purposes. - I.T.A. No.1058/Ahd/2015 - - - Dated:- 20-6-2018 - SHRI WASEEM AHMED, ACCOUNTANT MEMBER And SMT MADHUMITA ROY, JUDICIAL MEMBER For The Appellant : Shri Ankit M. Talsania, A.R. For The Respondent : Shri Rajesh Meena, Sr. D.R. ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the assessee against the appellate order of the Commissioner of Income Tax(Appeals)-4, Ahmedabad [CIT(A) in short] vide old appeal no. CIT(A)-4/XV/XXI/1147/Wd.13(1)/14-15 and new appeal no.CIT(A)- 4/68/Wd.13(1)/14-15 dated 13.02.2015 arising in the assessment order passed under s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) dated 31.01.2014 relevant to Assessment Year (AY) 2011-12. 2. The grounds of appeal raised by the assessee are as under:- 1. The assessee being a villager and service in govt. department is not much aware about the laws and rules like busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ltural land is not a capital asset as per the definition of section 2(14) of the Act, therefore, the entire sale consideration of ₹ 82 lacs is exempt from tax. Similarly, the assessee has withdrawn a sum of ₹ 1,44,000/- from the bank during the year and balance amount of ₹ 1,39,000/- was deposited out of such amount. The Assessee also claimed that he had agricultural income during the year. However, the AO disregarded the contention of the assessee by observing that entire amount of sale consideration was received for ₹ 72 lacs through banking channel as evident from the sale deed of the agricultural land sold during the year. Therefore, the argument of the assessee that he has received sum of ₹ 10 lacs in cash against the sale of agricultural land was rejected. The AO also observed that the assessee had sold the agricultural land at the beginning of the financial year. Therefore, there is no question of having income from the agricultural activity during the year. Similarly, the AO also observed that the money had been withdrawn from the bank on regular intervals which must have been used for household expenses. The assessee has also not give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disclosed by the appellant in the return of income 5. Stamp duty has been paid on 72 lakhs only. 4.2.2 All the above facts clearly prove that the said rural agricultural land was sold only for the 72 lakhs. The affidavit filed by the appellant is a self-serving document which cannot be relied especially when the relevant transaction and the relevant sale consideration has already been disclosed in the return of income filed by the appellant. If appellant has received any amount over and above the disclosed consideration, he should have filed a revised return disclosing such extra consideration. There is no confirmation from the buyers confirming payment of cash of ₹ 10 lakhs to the appellant. In view of above facts, it is held that appellant could not explain the source of cash deposits of ₹ 11,39,000/- in his bank account. As per the provisions of the income tax act, the burden is on the appellant to explain the source of cash deposits in his bank account which he has failed to discharge Accordingly, the addition made by the assessing officer of ₹ 11,39,000/- is, sustained. Ground number 3 is dismissed. Being aggrieved by order of learned CIT ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by the provisions of the law. Hence, the ground of appeal filed by the assessee is allowed for statistical purposes. 8. The second issue raised by the assessee in this appeal is that learned CIT(A) erred in confirming the addition of ₹ 60,554/- on account of interest income accrued on investment in NSC. The assessee has shown investment in NSC, FDR and saving bank account but failed to declare the income accrued on such investments in income tax return. The assessee claimed to disclose such income on the maturity of same. However, the AO disregarded the contention of the assessee and worked out the income accrued on such investment for ₹ 60,554/- and added to the total income of the assessee. 9. Aggrieved, assessee preferred an appeal to learned CIT(A). The assessee before the learned CIT(A) submitted that he has been following the cash system of accounting and therefore, the income corresponding to the investment will only to accounted in the year of receipt. However, the learned CIT(A) disregarded the contention of the assessee and confirmed the order of AO by observing as under: 5.2 I have carefully considered the submissions made by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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