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TMI Blog2024 (4) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... y or add any of the ground/s of appeal." 2. Succinctly stated, the assessee had e-filed his return of income for A.Y.2017- 18 on 20.06.2017 declaring an income of Rs. 1,53,780/-. The case of the assessee was, thereafter, selected for limited scrutiny u/s. 143(2) of the Act for verifying the large cash deposits made by the assessee in his bank account during the demonetization period. 3. During the course of the assessment proceedings, it was observed by the A.O that the assessee had made cash deposits of Rs. 22.30 lacs in his bank accounts with Bank of India, Branch: Raipur. On being queried about the aforesaid cash deposits, it was claimed by the assessee that the same were sourced out of sale proceeds of agriculture produce of 16 acres of agricultural land (including 8 acres of agriculture land situated at Vill. Kapasada, Dist. Durg taken on lease from his nephew) under his self-cultivation. However, the aforesaid explanation of the assessee did not find favor with the A.O. On a perusal of the cash book produced by the assessee, the A.O. observed that cash deposits made by the assessee in his bank account had substantially increased in comparison to those made in the same perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the orders of the lower authorities and the material available on record, as well as considered the judicial pronouncements that have been pressed into service by the Ld. AR to drive home his contentions. 7. Shri R.B Doshi, Ld. Authorized Representative (for short 'AR') for the assessee at the threshold submitted that the addition of Rs. 22.30 lacs made by the A.O concerning the cash deposits made in the bank accounts was comprised of two parts, viz. (i) cash deposit in assessee's bank account No.935032110000536 with Bank of India, Branch Raipur: Rs. 12.35 lacs; and (ii) cash deposits in joint Agricultural Kisan Credit (KCC) Account No.935032110000343 held by the assessee, Shri Dinesh Solanki (brother of the assessee) & Smt. Jayshree Sunil Solani (sister-in-law of the assessee): Rs. 9.95 lacs. It was submitted by the Ld. AR that though the assessee in the course of the proceedings before the CIT(Appeals) had filed an "affidavit" dated 04.01.2024 of Shri Dinesh Solanki (assessee's brother), wherein he had admitted that the joint Agricultural Kisan Credit (KCC) Account No.935032110000343 was solely used by him and deposits/withdrawals from the said account related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asons for making higher amount of cash deposits during the demonetization period, the Ld. AR submitted that now when the currency was demonetized by the government, the assessee was compelled to deposit in his bank account the Specified Bank Notes (SBNs) which comprised of his earnings for the year under consideration as well as accumulated savings. 10. Alternatively, the Ld. AR assailed the addition made by the A.O. u/s. 69A of the Act on the ground that as the pre-conditions contemplated in the said statutory provision were not satisfied by the assessee, therefore, the A.O could not have triggered the same and made the consequential addition in the hands of the assessee. Elaborating on his contention, the Ld. AR submitted that the provisions of Section 69A of the Act would, inter alia, come into play only in a case where the assessee is found to be the owner of any money that is not recorded in the books of accounts and the assessee fails to offer any explanation about the nature and source of acquisition of the money; or the explanation so offered by him is not in the opinion of the A.O satisfactory. Carrying his contention further, the Ld. AR submitted that as the cash deposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prepared a consolidated cash flow statement for a period of three years, i.e. 01.04.2014 to 31.03.2017 to justify the source of the cash deposits in his bank account. As the aforesaid cash/fund flow statements filed by the assessee in the course of the assessment proceedings cannot not be construed as the regular books of account maintained by him, therefore, his aforesaid contention, for which, support had been drawn from the aforementioned judicial pronouncements would not carry his case any further. 14. Apropos the cash deposits of Rs. 9.95 lacs in the joint Agricultural Kisan Credit (KCC) Account No.935032110000343, I find substance in the contention of the Ld. AR that as his brother, viz. Shri Dinesh Solanki (supra) had by way of an "affidavit" dated 04.01.2024 [filed before the CIT(Appeals)] deposed that the said bank account was solely being used by him and the deposits/withdrawals made in the same related to his farming business, therefore, there was no justification for the CIT(Appeals) to have summarily brushed aside the said material fact and without rebutting the contents of the same held the cash deposits in the said bank account as the unexplained money of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee before him. Needless to say, the CIT(Appeals) shall in the course of the set-aside proceedings afford a reasonable opportunity of being heard to the assessee. 15. Apropos the addition of Rs. 12.35 lacs made by the A.O concerning the cash deposits made by the assessee in his savings bank account No. 935032110000536 with Bank of India, Branch: Raipur, it is the claim of the Ld. AR that the same was sourced out of, viz. (i) the agricultural income of the assessee for the subject year; and (ii) out of accumulated savings of the assessee which in turn were sourced from his agricultural income of the preceding years. As observed by me hereinabove, it is a matter of fact borne from the record that the assessee had disclosed agricultural income of Rs. 4,98,720/- (net of expenses) for the year under consideration, Page 93-94 of APB. Also, the assessee had in his return of income for the immediately preceding year, i.e. A.Y.2015-16 and A.Y.2016-17 disclosed agricultural income of Rs. 6.87 lacs (approx.) and Rs. 4.28 lacs (approx.) in his returns of income for the said respective years. Considering the aforesaid source of income of the assessee, i.e. agricultural income, I am of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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