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TMI Blog2024 (3) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... ntioned there in and some of the bills of APMC produced before us clearly show that assessee is engaged in agricultural activities. Now the only issue remains is whether in absence of complete details of sale of agricultural produce the income shown by the assessee is acceptable or not. We find that on the basis of land holding, the assessee has shown annual agricultural income of ₹6000/- per acre. Thus we find that such income cannot be excessive and cannot be considered as income from undisclosed sources. Therefore, the addition made by AO of agricultural income shown by the assessee as undisclosed income for A.Y. 2013-14 to 2018-19, is unsustainable and deserves to be deleted. Coming to the A.Y. 2019-20, where the additions of ₹14 lacs is made, the source is explained by the assessee being ₹ 12 lacs out of past savings - On looking at the income offered by the assessee for A.Y. 2013-14 till 2019-20, it is apparent that assessee has disclosed total income of commission and bank interest for all these years of approximately ₹10 lacs. Even after accounting for all expenditure out of this sum, the savings of only ₹1,60,000/- being 5% of his other income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the assessee has stated that cash of ₹12 lacs belongs to him and the remaining ₹2 lacs belongs to his sister. v. The learned Assessing Officer found that this locker at Fakir Chand Lockers and Vaults Pvt. Ltd, Khara Boli, 6704A, Naya Bazar, Delhi. The locker was allotted without proper KYC and the lockers were also operated without any rules and regulations and further, CCTV cameras were also not working. vi. As one of the lockers was allotted in the name of assessee, summons under Section 131 of the Income-tax Act, 1961 (the Act) was issued to him and Assessee appeared on 4th December, 2018 and statement was recorded on oath. He was questioned about ₹14 lacs and its sources, wherein in answer to question no.8, he submitted that out of ₹14 lacs, 12 lacs belongs to him and ₹2 lacs belongs to her sister. She has given this money before one year to him to be placed in locker. vii. With respect to the source of ₹12 lacs, Assessee says that it is out of his savings from brokerage and agricultural income. He was also questioned that where his annual income is only ₹3 lacs how ₹14 lacs in denomination of new notes of ₹2000 were f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urces to the total income of the assessee as declared by the assessee in his return of income as exempt income. In this case also assessee could furnish only the certificate from Patwari for agricultural land holding. Accordingly, total income of the assessee was assessed at ₹3,56,520/- and addition of the agricultural income was made of ₹1,68,000/- as assessee failed to prove the complete source of agricultural income. 06. For A.Y. 2014-15, assessee filed return of income on 30th March, 2016, at ₹2,16,980/- and further, agricultural income was shown of ₹1,76,000/-. The assessment order under Section 153A read with section 144 of the Act was passed on 21st June, 2021, treating the agricultural income as the normal income and total income was assessed at ₹3,92,980/-. 07. For A.Y. 2015-16, assessee filed its return of income on 27th March, 2017, declared total income of ₹2,59,810/- and also claimed agricultural income of ₹1,84,000/-. The assessment order was passed on 17th June, 2021, assessing the total income of the assessee at ₹4,43,801/-. 08. For A.Y. 2016-17, the assessee filed return of income on 27th March, 2017, showing income o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs. He also submitted before the learned Assessing Officer the details of agricultural land owned by him and sales receipt of Rajasthan Government Anaj Mandi. He also submitted Patwari certificate of the land ownership which was produced before the learned Assessing Officer which was rejected and credit of agricultural income was not given. The learned CIT (A) was also submitted that as assessee is belonging to the village near Bikaner District Rajasthan and he infected with COVID, proper opportunity was not given. The evidences submitted by the assessee before the learned CIT (A) which were also produced before the learned Assessing Officer were considered by the learned CIT (A). Such evidences are; copies of the sales receipt from agricultural produce committee at Bikaner and further the certificate of land holding. The learned CIT (A) upheld the action of the learned Assessing Officer holding that these evidences are inadequate and therefore, he confirmed the addition of agricultural income for A.Y. 2013-14 to 2018-20 as income from undisclosed sources. 015. For A.Y. 2019-20, with respect to the addition of ₹14 lacs he also upheld the addition for the reason that there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Y. 2019-20, [3] He also challenged the fact that there is no incriminating material found during the course of search with respect to earlier years and therefore, for A.Y. 2013-14 to 2018-19, no addition could have been made in the hands of the assessee. 019. The learned Departmental Representative vehemently supported the order of the learned lower authorities and submitted that in absence of any substantial detail of agricultural activities, the agricultural income shown by the assessee has been correctly added as income from undisclosed sources in the hands of the assessee. Further, the argument of the assessee of ₹2 lacs received from his sisters is also unsubstantiated and merely an affidavit is filed. He further stated that even if the income of the assessee is considered to be out of his past savings, there is no explanation that how he came into the possession of new notes issued of ₹2,000/- post demonetization. In view of this, the orders of the lower authorities are sustainable. 020. We have carefully considered the rival contentions and perused the orders of the lower authorities. We have also perused the paper books filed and arguments raised before us. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,500/- out of his saving from Petty Commission Activities. On looking at the income offered by the assessee for A.Y. 2013-14 till 2019-20, it is apparent that assessee has disclosed total income of commission and bank interest for all these years of approximately ₹10 lacs. Even after accounting for all expenditure out of this sum, the savings of only ₹1,60,000/- being 5% of his other income cannot be disbelieved. Therefore, the additions to the extent of ₹12 lacs in the hands of the assessee out of ₹14 lacs are explained. 022. Coming to the sum of ₹2 lacs, which assessee has stated to be belonging to her sisters is supported by an affidavit. The affidavit of Smt. Anita Devi Baldeva, shows her residential address and her Permanent Account Number, which clearly shows that she has kept a sum of ₹2 lacs in cash with him, which was kept by assessee into locker. The source of such sum is from her past savings and out of Stredhan. She has also given her permanent Account Number. This is the explanation of the assessee since the date of search. Then, permanent Account number is also given and money is owned by his sister, the addition cannot be made in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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