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2023 (8) TMI 35

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..... ttedly and undisputedly, assessee s wife is not a tax payer and, therefore, whatever cash is accumulated out of past savings is out of the earnings of the assessee (her husband) only and, therefore, only the husband i.e. the assessee should get the benefit of this instruction. Accordingly, direct the AO to given benefit of cash deposits of Rs. 2.50 lacs out of total cash deposits of Rs. 3.25 lacs on this account. Accordingly, the difference of Rs. 75,000/- is sustained. The assessee is directed to pass the consequential order giving effect to my directions as aforestated. Appeal of the assessee stands partly allowed. - ITA No. 148/Lkw/2023 - - - Dated:- 27-7-2023 - Shri Sudhanshu Srivastava, Judicial Member For the Appellant : Shri Shubham Rastogi, CA For the Respondent : Shri Sanjeev Krishna Sharma, Addl. CIT (DR) ORDER PER SUDHANSHU SRIVASTAVA, J.M.: 1. This appeal is preferred by the assessee against the order dated 11.03.2022 passed by the National Faceless Appeal Centre (NFAC), Delhi for Assessment Year (AY) 2017-18. 2. The brief facts of the case are that the assessee is a U.P. Government Servant employed with the U.P. Police. At the time o .....

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..... well as before Ld. A.O. 3. The Ld. CIT (A) fails to appreciate that Cash Deposit of Rs. 3,95,000/- during demonetization period out of accumulated cash saving being earlier year withdrawals available in the hand of Assessee and his wife as Stridhan and Assessee's fund. In this regard, an affidavit was also filed which was not prove to be false. 4- The Ld. C.I.T. (A) erred on facts and in law in upholding the additions of Rs. 8,20,000/- on assumptions surmises of Ld. A.O. without going through the relevant evidences filed through e-filing portal before him as well as before Ld. A. O. Further, Cash deposit has also been duly reported as Cash Transaction 2016 vide acknowledgement no. 3638549994 as per Rules. 5- The Ld. C.I.T. (A) fails to appreciate that the Assessee is an old Income Tax Assessee and Cash Fund of Rs. 3,95,000/- was available in the family out of past saving being withdrawal from bank etc. and as Stridhan kept for medical and safety purpose of the family. 6- The addition upheld is highly excessive, contrary to the facts, law and principle of natural justice and without providing sufficient time and opportunity to have its say on the reasons reli .....

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..... this regard and the assessee owned approximately 3.25 hectares of agricultural land and poplar trees had been planted alongside the boundary wall of the agricultural land, which had matured during the year under consideration and were, therefore, cut and sold. It was submitted that even in the computation sheet, the Assessing Officer had shown agricultural income of Rs. 4,25,000/- but had, thereafter, treated it as income from undisclosed sources, apparently resulting in double taxation of the amount as the amount of Rs. 4,25,000/- was earlier included in the computation of income for rate purposes. The ld. A.R. also submitted that nowhere has the Assessing Officer disputed the assessee s submission regarding sale of poplar trees and has only harped on the fact that in earlier assessment years, the assessee s agricultural income was miniscule. It was submitted that the sale of poplar trees does not happen every year but only when the trees have matured and are ready to be cut and, therefore, just because the assessee did not have substantial agricultural income in the past, it would not mean that the assessee s claim of agricultural income in this year was incorrect. The ld. AR su .....

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..... he assessee being in Government Service is usually posted at different districts out of his own home town and, therefore, he was in the habit of giving cash to his wife to meet household expenses from time to time as well as to keep cash at home to meet contingencies and emergencies. It was submitted that only this accumulated cash from the past savings over a period of several years had been deposited and the same should be accepted. 9.0 Per contra, the ld. Senior D.R. submitted that the Assessing Officer as well as the NFAC had recorded a categorical finding that the assessee had not submitted any proof regarding agricultural income and, therefore, the addition had rightly being made. It was also submitted that the explanation of the assessee regarding cash deposited out of past savings was also a mere after thought to escape the rigors of tax. The ld. Senior Departmental Representative strongly supported the order of the NFAC and also placed reliance on the observation of the Assessing Officer and submitted that the sale of poplar trees as well as the claim of cash deposited from past savings were not verifiable and prayed that the assessee s appeal be dismissed. 10.0 I ha .....

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