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TMI Blog2019 (12) TMI 825X X X X Extracts X X X X X X X X Extracts X X X X ..... unt with ICICI Bank Ltd. - HELD THAT:- Agricultural land holding is sufficient but same is appearing in the Revenue records in the name of various family members of the assessee being his father who is 95 years old, mother who is 90 years old and one non-resident brother who is residing in London. Thus, the facts remains that the agricultural land holding is hereditary agricultural land and standing in the name of various members of the HUF, including the assessee,on which agricultural operations is being carried out by the assessee and expenses thereon being incurred by the assessee and sale proceeds of same has been used for cash deposits in bank account by the assessee. Since the assessee is the only person looking after financial affairs of the family therefore, it is but natural that sale proceeds of agricultural products have been used for cash deposits in his bank account. Therefore, considering the agricultural land holding of the family, bills of agriculture products, and the assessee is only person who looking after financial affairs and circumstantial surrounding circumstances, we are of the considered opinion that said agricultural income has been used for cash deposits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Valsad [in short the CIT(A) ] dated 06.09.2017 and 20.05.2019 pertaining to Assessment Year 2009-10 and 2010-11 respectively, which in turn has arisen from the separate assessment orders passed under section 143 (3) read with section 147 of Income Tax Act, 1961 (in short the Act ) by the Income Tax Officer, Ward- -3, Valsad (in short the AO ). I.T.A.No. 194/SRT/2017/A.Y. 2009-10:- 2. Ground No.1 is against the reopening of assessment u/s.147 and issue of notice under section 148 of the Act. 3. Learned Counsel referred Paper Book Page No. 9 and submitted that the notice under section 148 of the Act dated 25.03.2016 has been issued by the Income Tax Officer, Ward- 3, Vapi whereas the assessment has been made by the Income Tax Officer, Ward- 3 Valsad. Thus, the Income Tax Officer, Ward-3, Vapi had issued the notice under section 148 of the Act, who had no jurisdiction over the assessee, as the jurisdiction was lying with Income Tax Officer, Ward-3, Valsad. Therefore, notice under section 148 of the Act, is not sustainable in law hence, assessment proceedings may be quashed. 4. Au contraire, the ld. Sr. D.R. submitted the assessee has filed his return of income with Income Tax Officer, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 7/12 was also filed. However, the AO noted that the 7/12 does not show the land in the name of the assessee. Therefore, the assessee was show caused. In response to which, it was submitted that land is inherited one and appearing in the name of father being head of family in which the assessee has is having his share. The assessee has had been carrying on agricultural activity on said land. Therefore, agricultural income shown by the assessee is correct and cash deposits is out of the said agricultural income. However, the AO did not accept the explanation on the ground that no agricultural income is shown in return of income. The explanation submitted after reopening of assessment. Having bills and expenditure in the name of the assessee does not make one as agriculturist. Accordingly, the cash deposits were taxed as per provisions of section 115BBE and 69 of the Act. 8. Being, aggrieved, the assessee filed an appeal before the Ld. CIT (A).Wherein it was contended that the assessee has showed sale of agricultural products in cash of ₹ 15, 90,622and net agricultural income of ₹ 9, 54,373. In ICICI bank, there are cash deposits of ₹ 10, 87,975 and cheque deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l (mother of the assessee, who is 90 years old) HarshadbhaiPatel (the assessee) and Hemal Harshadbhai Patel (wife of the assessee) Chandrakantbhai Patel (brother of the assessee). During remand report proceedings, the assessee has also filed a certificate dated 19.06.2017 from Talati Cum Mantri of Gram Panchayat-Tighra certifying the agricultural land held by the assessee and his family members.Learned Counsel contended that the agricultural land belonged to HUF and the assessee is the only person who is looking after the agricultural products as his mother and father are very old one and one brother has died and other is non-resident residing in London. It was submitted that ample evidence has been furnished of land holding and even if the agricultural income were to be divided among, even there would be no tax implication as agricultural income is exempt. However, the facts is that the agricultural income of family members is shown by the assessee in his return of income and out of which cash deposits in the bank account has been made. The said bank account is reflected in balance sheet as on 31.03.2009. Hence, no and under section 69 could be made. In the alternate, it was submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning addition of ₹ 6,643 on account of bank interest from S/B account of ICICI Bank Ltd. 13. We have heard the rival submissions and perused the relevant material on record. We find that the AO made addition of interest of ₹ 1, 306 from ICICI bank, ₹ 1, 340 from Bank of Baroda, ₹ 3, 997 from Union Bank of India as same was not shown by the assessee. These were agreed to be added. However, in appeal these were contested as bank interest up to ₹ 10,000 is exempt under section 80L of the Act. However, CIT (A) held the provision of section 80L was omitted with effect from 01.06.2006 and equivalent provision was introduced u/s. 80TTA with effect from 01.04.2013. Hence, confirmed the same. In view of these circumstances and facts that the assessee has agreed for addition during the course of assessment proceedings, we do not find any merit in this ground, hence, it is dismissed. 14. In the result, the appeal of the assessee is partly allowed. I.T.A.No. 356/SRT/2019/A.Y. 2010-11:- 15. Ground No.1 is against the reopening of assessment u/s.147 and issue of notice under section 148 of the Act. 16. Learned Counsel submitted that reopening of assessment has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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