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TMI Blog2022 (12) TMI 1505X X X X Extracts X X X X X X X X Extracts X X X X ..... be unfair to summarily accept the same without subjecting the same to necessary verification - the matter in all fairness requires to be revisited by the A.O. A.O is herein directed to re-adjudicate the issue after duly taking cognizance of the explanation of the assessee as regards the source of the cash deposits in the bank accounts in question. Appeal of the assessee is allowed for statistical purposes. - SHRI RAVISH SOOD, JUDICIAL MEMBER For the Assessee : Shri R.B Doshi, CA For the Revenue : Shri G.N Singh, Sr. DR ORDER PER RAVISH SOOD, JM The present appeal filed by the assessee is directed against the order passed by the Commissioner of Income-Tax (Appeals), National Faceless Appeal Center (NFAC), Delhi, dated 10.12.2021, which in turn arises from the order passed by the A.O under Sec. 143(3) of the Income-tax Act, 1961 (in short the Act ) dated 25.12.2019 for the assessment year 2017-18. The assessee has assailed the impugned order on the following grounds of appeal: 1). On the facts and in the circumstances of the case CIT(A) erred in confirming addition of Rs. 20,00,000/- made by the Assessing Officer by invoking provision of section 69A in respect of cash deposited in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2018/19 onwards. The assessee prays that the income-tax be charged on such transactions @ 30%. 4) The appellant reserves the right to add, amend, or alter any ground or grounds of appeal at the time of hearing. 2. Succinctly stated, the assessee had e-filed his return of income for A.Y.2017-18 on 16.03.2018, declaring an income of Rs. 12,89,900/-. Subsequently, the case of the assessee was selected for limited scrutiny through CASS for the reason that there were cash deposits in his bank accounts during the demonetization period. 3. During the course of the assessment proceedings, it was observed by the A.O that the assessee during the year under consideration had made cash deposit of Rs. 10 lac each in his bank A/c. No.1385225338 with Central Bank of India and bank A/c. No. 21287579605 with Allahabad Bank. On being queried about the source of the aforesaid cash deposits, the assessee as observed by the A.O had claimed that the same was sourced out of his agriculture income. Rebutting the aforesaid claim of the assessee, it was observed by the A.O that the assessee had not offered any agriculture income for taxation in his return of income for the year under consideration. Apart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter in appeal before me. 6. At the very outset of the hearing of the appeal, it was submitted by the Ld. Authorized Representative (for short AR ) for the assessee that both the lower authorities had grossly erred in observing that the assessee had claimed that the cash deposits of Rs. 20 lac in his bank accounts were sourced out of agriculture income. Our attention was drawn by the Ld. AR to the submissions which were filed before the CIT(Appeals), dated 04.09.2020 wherein the assessee had duly clarified that as the agricultural land was owned by his HUF, therefore, the income earned therefrom belonged to the latter and had duly been accounted for in its returns of income for the year under consideration as well as those for the preceding years. It was further averred by the Ld. AR that the assessee had before the CIT(Appeals) categorically refuted the observation of the A.O that he had in the course of the assessment proceedings claimed that the source of the cash deposits in his bank accounts was out of agriculture income. On the contrary, it was submitted by the Ld. AR that the assesee had brought to the notice of the CIT(Appeals) that cash deposits in question were made fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the parties, perused the orders of the lower authorities and the material available on record. 9. I have given a thoughtful consideration to the issue in hand, i.e. sustainability of the addition of Rs. 20 lac made by the A.O u/s.69A of the Act. Ostensibly, it is the claim of both the lower authorities that the assessee on being called upon to put forth an explanation as regards the source of the cash deposits aggregating to Rs. 20 lac (supra) in his aforementioned bank accounts, had claimed that the same were sourced out of his agriculture income. On the contrary, it is the claim of the Ld. AR that the assessee had never related the cash deposits with the agriculture income, which, in fact, belonged to his HUF and was duly offered to tax in the latter s hand. To sum up, the observation of both the lower authorities as regards the explanation of the assessee qua the source of the cash deposits clearly militates as against that projected by the Ld. AR before me. 10. Having given a thoughtful consideration to the aforesaid controversy in hand, I find some substance in the claim of the assessee that he had stated before the lower authorities that the cash deposits in question were s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... culture activities thereon. Thus, from above it is clearly evidence that the assessee had furnished corroborative and sufficient evidences and explanations in terms of provisions of section 69A to discharge his burden to prove nature and source of cash deposited in bank account during demonetization period and on shifting of burden to A.O, after filing of said evidence and giving proper explanation, to draw satisfaction about explanation offered by the assessee A.O failed to discharge her burden properly and judicially as she has rejected explanation of the assessee simply by stating that assessee framed afterthought cooked up story to explain source of cash deposit in bank account as out of agriculture income only on guess, surmise and presumption as assessee had not shown in the cash books, capital accounts, balance sheets and income tax returns for A.Y.s 2015/16 to 2017/18 any agriculture land or agriculture incomes, as the case may be, and also established with evidence that agriculture land is belonged to his HUF and income therefrom is shown regularly in his HUF return. On a perusal of the cash books for the year under consideration, it stands revealed beyond doubt that both ..... X X X X Extracts X X X X X X X X Extracts X X X X
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