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TMI Blog2022 (5) TMI 830X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 & same as source of cash deposited in bank A/c. Even then CIT(A) had not accepted remand report of A.O. 2. Learned CIT(A) had erred in confirming addition of Rs.26,59,225 made by A.O. U/s- 68 of the Act being cash deposited in bank A/c, as much as, 2.1. Appellant was doing business of share trading/investment & had factually explained how cash of Rs.26,59,225 arose in share trading/investment and deposited in bank a/c. 2.2. The A.O. had in his remand report accepted source of cash deposited Rs.26,59,225 in bank a/c. Even then CIT(A) had not accepted Remand report of A.O. 3. Learned CIT(A) had erred in confirming addition of Rs.35,81,225 made by A.O. (Rs.9,22,000+ Rs.26,59,225) and did not accept peak credit offered to tax of Rs.6,81,278 though accepted by A.O. in remand report. 4. The assessee carves for liberty to amend, modify and add any grounds of appeal or furnish additional evidences. 3. The interconnected issue raised by the assessee is that the learned CIT(A) erred in confirming the addition made by the AO for Rs. 35,81,225/- on account of cash deposited by the assessee in the bank account treating the same as unexplained cash credit/unexplained income. 4. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO made the aggregate addition of Rs. 35,81,255.00 to the total income of the assessee. 5. Aggrieved assessee preferred an appeal to the learned CIT-A. 6. The assessee before the learned CIT-A has filed the additional evidences to justify that the amount of agriculture income does not represents the unexplained cash credit and likewise the amount of cash deposit amounting to Rs. 26,59,255/- in the bank account bearing number 220517200000355 does not represent the undisclosed income. The learned CIT(A) called for the remand report from the AO on the additional evidences filed by the assessee. The AO in his remand report dated 24th February 2017 has accepted the contention of the assessee that the amount of cash deposit of Rs. 9.22 lacs represents the agricultural income of the assessee. As per the AO, the proprietor of commission agent namely M/s Aditya Grishbhia Unjha was called upon to verify the veracity of sale purchase of the agricultural produce who in turn confirmed to have purchased the agricultural produce from the assessee for Rs. 9.22 lacs in cash in the year under consideration. Likewise, the AO also observed in his remand report that the assessee was not only carryin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned CIT-A with respect to the cash deposit of the assessee for Rs.26,59,255/- s observed that the AO in his order dated 18-2-2016 has given unambiguous finding that amount of cash withdrawal from the bank account bearing number 220517200000355 was not incorporated in the cash book furnished by the assessee. 7.2 Likewise, contention of the assessee that he has made investment in the shares on behalf of certain parties/relatives from whom the cash was received was devoid of any merit. It is for the reason that there was no documentary evidence furnished by the assessee on record so as to justify the share activity of the assessee on behalf of other parties. 7.3 All the parties who have given money to the assessee in cash were holding the bank account. Therefore, there was no reason for them to withdraw the cash from the bank account and handover to the assessee for the deposit in the bank account of the assessee. As such the amount was withdrawn in low volume which was given to the assessee for the investment in the shares after considerable time gap. 7.4 The relevant finding of the ld. CIT-A stands as under: The appellant has claimed that whenever shares are allotted in applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties which includes family members, relatives and friends, cash are withdrawn and same are deposited in appellant's bank account. Had it been the case, appellant would have deposited such cash withdrawn immediately i.e within one or two days in bank account. The appellant has shown cash balance of Rs.3,18,175/- on 29/11/2007, Rs.5,95,375/- on 03/12/2017 after considering cash withdrawn from third party for Rs.92,400/- on 03/12/2007. The said cash balance increased to Rs.9,40,475/- on 08/12/2007 after considering cash withdrawal from third party for Rs.3,69,600/- on 04/12/2007. On 11/12/2007, cash balance was Rs.10,06,475/- and only Rs.2,82,250/- is deposited in bank account on 12/12/2007. Rs.4,70,300/- was deposited on 13/12/2007. Had the cash available with appellant, he would have immediately deposited cash in his bank account. This pattern has continued throughout the year. Even cash balance on 01/03/2008 was Rs.20,61,520/- which is unusual balance and no prudent person keep such cash with him. It is also observed that appellant has ciaimed to have cash of Rs.14,83,580/- in cash book as on 26/02/2008 and such cash is even not deposited in bank account till 31st March 2008. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith respect to the cash deposited for Rs.9.22 lakhs in the bank out of agricultural income. 9.1 The learned AR with respect to the cash deposits of Rs. 26,59,255.00 in the bank account bearing number 220517200000355 has filed the additional evidences in the form of paper book running from pages 1 to 143. According to the learned AR, the additional evidences filed by the assessee goes to the root of the matter and therefore the consideration of the same is necessary for deciding the issue. 10. On the contrary, the learned DR vehemently supported the order of the authorities below. 11. We have heard the rival contentions of both the parties and perused the materials available on record. Admittedly, there was no doubt raised by the authorities below with respect to the lands held by the assessee in his individual capacity and as joint ownership. Therefore, the possibility of agricultural income cannot be ruled out in entirety merely on the reasoning as pointed out by the learned CIT-A, which have been reproduced somewhere in the preceding paragraph. Though, the reasons given by the learned CIT-A appears to be valid for not having agricultural income in the hands of the assessee, bu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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