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TMI Blog2019 (8) TMI 1854X X X X Extracts X X X X X X X X Extracts X X X X ..... by considering the totality of the facts, particularly the acceptance given by the purchasers of the Popular trees in their respective affidavits, sale proceeds from Shri Ziledar Ali and Shri Mohan Walia apart from the agriculture income estimated by the Ld. CIT(A) at Rs. 11,00,000/- was sufficient to make the deposit of Rs. 26,68,850/- in the bank account of the assessee. In that view of the matter the addition sustained by the Ld. CIT(A) is deleted. Appeal of the assessee is allowed. - ITA No. 281/Chd/2019 - - - Dated:- 1-8-2019 - SHRI. N.K.SAINI, VICE PRESIDENT For the Assessee : Shri Sudhir Sehgal, Advocate For the Revenue : Smt. Chandrakanta, Sr. DR ORDER PER N.K. SAINI, VICE PRESIDENT This is an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. AO is based only on one point that the land on which the trees were planted as per Girdawari is lesser and there can t be enough trees which may be sold for ' Twenty lakhs or so hence the agricultural income should be taken as income from other sources. He has failed to point out even a single instance which at least points that the assessee was doing some business also; he did not bother to estimate the income of the assessee from agriculture and ignored all the facts including the fact that the assessee was not under any obligation to maintain any records and ignored all the evidences to make the impugned additions. Also, in a hurry to pass the order; he invoked section 69 in place of section 69A. 4.1 Ld. CIT(A) after co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue records, it is also apparent that Popular Trees were there on the land of the assessee, which he has claimed before the assessing officer to have sold during the year. In the absence of any proof, a credit of Rs. 2 lakhs on an estimated basis is allowed to the assessee. Computing the same addition on account cash deposits is reduced to Rs. (26,68,850 - 11,00,000 - 2,00,000 = 13,68,850/-) 13,68,850/- under section 69A of the Income Tax Act, 1961. The assessment order passed by the assessing officer is modified accordingly. Grounds of appeal No. 1 to 3 are thus partly allowed. 5. Now the assessee is in appeal. 6. Ld. Counsel for the assessee reiterated the submissions made before the authorities below and further submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the statement recorded by the A.O. Shri Mohan Walia accepted that he had purchased the Popular trees from the assessee for approximately Rs. 10,00,000/- the said statement dated 06/10/2017 is placed on page no. 9-14 of the assessee s paper book. It was contended that the Popular tree were also there in the earlier years which were sold by the assessee during the year under consideration and the sale proceeds were utilized for depositing in the bank account, the source of deposits in the saving bank account maintained with Axis Bank, Sadhaura was fully explained. Therefore, the addition made by the A.O. and sustained by the Ld. CIT(A) was not justified. 7. In her rival submissions the Ld. Sr. DR strongly supported the orders of the autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hased the Popular trees for Rs. 10.40 lakhs, similarly Shri Mohan Walia in his affidavit stated that he purchased the Popular trees for a sum of Rs. 10.25 Lakhs. Shri Mohan Walia also accepted in his statement before the A.O. that he purchased Popular trees from the assessee for approximately Rs. 10,00,000/-. The assessee also furnished the copy of Girdawari before the A.O. and mentioned the Khasra number, on which the Popular trees were planted. In the present case, the A.O. while observing that trees were already cut in the earlier years had not brought any evidence on record to rebut this contention of the assessee that the Popular trees were already planted on the periphery of the field. Therefore, by considering the totality of the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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