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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 ..... operations and the remaining amount as income from other sources. Hence the 1st ground of appeal of the assessee is partly allowed. With respect to the addition of ₹ 26,59,255.00, we note that the assessee has filed the additional evidences before us which are available on record. We have perused the additional evidences and note that the consideration of these additional evidences at the level of the AO is essential. Accordingly, we exercise our power granted under rule 29 of ITAT rules and admit the additional evidence filed by the assessee. Thus in the interest of justice and fair play, we remit the issue to the file of the AO for fresh adjudication as per the provisions of law and after considering the additional evidences filed by the assessee. Hence the 2nd ground of appeal of the assessee is allowed for the statistical purposes. - ITA No. 1024/AHD/2017 - - - Dated:- 11-5-2022 - Shri Waseem Ahmed, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member For the Assessee : Shri S.V. Agrawal, A.R For the Revenue : Shri Urjit Shah, Sr.D.R ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee claimed that the amount of cash deposits of Rs. 19,97,280/- in the bank account bearing number 220515500013963 includes the amount of cash deposit of ₹ 9,22,000/- representing the agricultural income. The assessee in support of the agriculture income has filed the extract of 7/12 form and the bills issued by the commission agent namely M/s Aditya Grishbhai Unjha against the purchase of the agricultural produce from him (the assessee). 4.1 However, the AO found that the bills issued by the commission agents were pertaining to the period beginning from 30th June 2007 to 31st December 2007 but the bills were defective insofar all the bills are bearing the bill numbers in consecutive seriatim i.e. 103 to 107. According to the AO, it was not possible to issue the bill by the commission agent in seriatim which were pertaining to the different period. The AO further found that the TIN-VAT Number of the commission agent was also cancelled. Accordingly the AO doubted on the genuineness of the bills issued by the commission agents. Thus the AO called upon the commission agent to verify the bills issued by him. But the commission agent failed to appear. 4.2 Likewise, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.22 lacs represents the income from the source of agricultural activity. Likewise, the AO in his remand report has also accepted the genuineness of cash deposit made by the assessee for ₹ 26,59,255/- by holding that there were relatives of the assessee who handed over the cash to the assessee for making the investment in the shares. The assessee claimed to have received such cash from 9 parties which was used in the deposit of the bank account. Out of 9 parties, 4 parties were called upon and the furnished the statement under section 131 of the Act by admitting to have given cash to the assessee for making investment in the shares. The assessee has also filed confirmation from all the 9 parties. Accordingly the AO in his report concluded that the amount of cash deposit made by the assessee represents from the genuine sources and therefore, no addition is warranted. However the AO found that, there was negative cash balance on different dates as per the cash book furnished by the assessee. The aggregate negative cash balance in the cash book stands at ₹ 6,81,275/- which was treated as income from other sources. Thus the AO in the remand report confirmed the addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espective bank account and cash are withdrawn for redeposited such amount is appellant's bank account. However, when refund is already deposited in bank account of such family members and friend, they would have easily transferred such amount through cheque in appellant's bank account. Simply submitting confirmation and PAN would not prove that cash deposited in appellant's bank account are genuine. The appellant has also claimed that he was making application in IPO in names of various members again and again. When shares are not allotted in their name, refund is credited in bank account of such third parties, hence, as per appellant's argument, there was sufficient bank balance in respective bank account. In such cases, appellant would have made application directly from their bank account when according to him entire control in bank account is with appellant. There was no need at all for withdrawing cash from bank account of third parties and redepositing in appellant's bank account The circumstantial evidences nowhere support appellant's argument. The appellant has submitted working of peak credit wherein cash withdrawn from different bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant's theory cannot be accepted. The appellant's theory that cash withdrawn from bank account of various persons were utilised in deposited in appellant's bank account is contrary to facts and not supported by evidences. Even AO in remand report has recorded statement of 4 parties out of 9 parties and no parties have submitted copy of their bank book or return of income to prove that cash withdrawn from their bank account belongs to appellant Mere admission by third party in statement recorded during remand proceeding does not mean that appellant's explanation is proper when same is not supported by cogent evidences. (v) The appellant has also argued that there was opening cash balance of Rs.2,28,300/- and cash was deposited in current year is out of such opening cash balance. The appellant has not filed any return of income in earlier assessment year hence sanctity of opening cash balance in the hands of appellant cannot be accepted. Appellant has argued that opening cash balance cash withdrawn from relative friends bank account in tifs month of March 2007. However, in preceding paras, I have ..already held that appellant cannot be given cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her sources. In our considered opinion, justice shall be served to the assessee as well as to the revenue if the sum of ₹5 lakhs out of the total cash deposit of Rs. 9.22 lakhs is treated as income from agricultural operations and the remaining amount as income from other sources. Hence the 1st ground of appeal of the assessee is partly allowed. 11.1 With respect to the addition of ₹ 26,59,255.00, we note that the assessee has filed the additional evidences before us which are available on record. We have perused the additional evidences and note that the consideration of these additional evidences at the level of the AO is essential. Accordingly, we exercise our power granted under rule 29 of ITAT rules and admit the additional evidence filed by the assessee. Thus in the interest of justice and fair play, we remit the issue to the file of the AO for fresh adjudication as per the provisions of law and after considering the additional evidences filed by the assessee. Hence the 2nd ground of appeal of the assessee is allowed for the statistical purposes. 12. In the result, the appeal filed by the assessee is partly allowed for the statistical purposes. Orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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