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TMI Blog2021 (4) TMI 1188X X X X Extracts X X X X X X X X Extracts X X X X ..... dition made by the A.O. and sustained by the Ld. CIT(A) is deleted. Appeal of the Assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... led the final reply to the query raised vide notice under section 144 of the Act on 18/10/2016 and submitted that three cheques received by the assessee were from M/s. Vikas Trades in lieu of agricultural produce. It was also stated that in the earlier years the assessee was not maintaining bank account and the amount was deposited collectively in the previous year which had been earned in the earlier years, the submissions of the assessee were as under: "In response to the Notice u/s. 148 of the I.T. Act, 1961 it is submitted that the assessee is a farmer and having only agricultural income. The assessee is a senior citizen and does not have any other income other than agricultural income. The assessee was not maintaining any bank account in the earlier years and had deposited the amount of the previous year's collectively which he had earned. Further it is submitted that the assessee's income from agricultural produce does not fall under the preview of Income Tax and he does not given have a PAN number. In view of above circumstances assessee had not filed his return. We hope you will find the aforesaid information as per requirement." 4.3. However, the A.O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nexplained cash deposits are required to be added in the total income of the assessee.. As discussed above Hon'ble Supreme Court in the case of CIT vs. Durga Das More, (1971) 82 ITR 540 (SC) has categorically held that revenue is entitled to look into surrounding circumstances to find out the reality of recitals made in the documents. In the case of Sumati Dayal vs. CIT 214 ITR 801 (SC), the Hon'ble Supreme Court has also held that the matter has to be considered in light of the human probabilities. "It is a story that does not accord with human probabilities". The case of the assessee satisfies the above parameter and conditions laid down by the Hon'ble Apex Court. 4.12 As per provisions of the Income Tax Act 1961 where in the financial year immediately preceding the assessment year the assessee has made investments which are not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of the investments or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the value of the investments may be deemed to be the income of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010 respectively. It was further stated that the assessee also received cash from commission agent against sale of agricultural produce and adduced a xerox copy of account with M/s. Kahlon & Co. for the year ending 31/03/2010 which revealed earning of ₹ 3,45,212/-. It was submitted that the aforesaid amount of cash after meeting the household expenditure and cash expenditure relating to agricultural income were deposited in the bank account maintained with PNB in the denomination of ₹ 56,000/- on 24/04/2011 and ₹ 48,00,000/- on 12/08/2011. 5.1. The Ld. CIT(A) after considering the submissions of the assessee observed that the assessee's contention of being an agriculturist and an illiterate senior citizen, not having PAN at the time of the issuance of notice under section 148 of the Act was neither denied nor disputed. However, when the A.O. on the basis of information in his possession to the effect that the assessee had deposited a substantial amount of cash in his bank account, sought to enquire the sources of said deposit to satisfy himself about non escapement of any income from taxation, no satisfactory explanation could be given, constraining the hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income has to be effected with its full rigours. 5.5. The Ld. CIT(A) also observed that there had been substantial deposits both in cash and cheque and the agriculture income had been found to be deposited in the assessee's bank account by means of account payee cheques, in these circumstances, there was an onus on the assessee to explain the sources of deposits in cash which had not been cogently done. He therefore sustained the addition of ₹ 48,56,000/- made by the A.O. 6. Now the assessee is in appeal. 7. Ld. Counsel for the assessee reiterated the submissions made before the authorities below and further submitted that the assessee deposited the amount of ₹ 56,000/- on 22/04/2011 out of the earning of ₹ 3,45,212/- received from the commission agent M/s. Kahlon & Company against the sale of agriculture produce and the remaining amount of ₹ 48,00,000/- was deposited on 12/08/2011 out of the withdrawal of ₹ 30,00,000/- & 38,00,000/- on 25th & 26th October 2010 respectively. It was submitted that the Department did not bring any material on record to substantiate that the aforesaid amount withdrawn by the assessee was utilized elsewhere other th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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