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TMI Blog2024 (7) TMI 574X X X X Extracts X X X X X X X X Extracts X X X X ..... sustainable. Invocation of section 115BBE to the impugned addition set aside - Decided in favour of assessee. - SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER For the Appellant : Shri Ashish Goyal, CA and Shri N.D. Patwa, Adv For the Respondent : Shri Ashish Porwal, Sr. DR ORDER Per B.M. Biyani, A.M.: 1. Feeling aggrieved by appeal-order dated 03.08.2023 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [ CIT(A) ], which in turn arises out of assessment-order dated 26.10.2019 passed by learned ITO, Sendhwa [ AO ] u/s 144 of Income-tax Act, 1961 [ the Act ] for Assessment- Year [ AY ] 2017-18, the assessee has filed this appeal on following grounds: (1) The Ld. AO was not justified in passing the order, which is bad-in-law, void ab initio barred by limitation, illegal, contrary to the facts and circumstances of the case, liable to be annulled. (2) The ld. CIT(A) was not justified in confirming the order, which is bad-in- law void ab initio, barred by limitation, illegal, contrary to the facts and circumstances of the case, liable to be annulled. (3) The Ld. CIT(A) was not justified in confirming the addition of Rs. 11,46,500/- against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to make any submission before AO during assessment-proceeding but the assessee made a detailed submission during first-appeal which is noted by CIT(A) in Para No. 6 of his order. He invited our attention to Point No. 3 of assessee s submission [Page No. 6 of CIT(A) s order] wherein the assessee filed documentary evidences of agricultural income in the shape of Khasra copy, Invoice/Mandi Receipts and an Affidavit to CIT(A) in terms of Rule 46A of Income-tax Rules, 1962. The CIT(A), however, rejected assessee s submission and upheld AO s addition precisely for two reasons, (i) the assessee s documents were in the form of land ownership records and certain sales bills which seems in the form of self-serving documents, and (ii) the assessee cannot keep that much of cash idle at home while availing KCC (Kishan Credit Card) loan [Para No. 7.1 and 8.8 of CIT(A) s order]. Then, Ld. AR carried us to his Written-Submission and also corroborated the same with reference to the pages of paper-book mentioned therein, to show that the assessee was having sufficient land and the crops like Banana, Makka, Chilli, Kapas, Sugarcane were grown and the produce was sold. The Written-Submission filed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le any detail before him. He also emphasized that the assessee has made the impugned bank deposits during demonetization period. Therefore, the addition made by AO is in order and must be upheld. 7. We have considered rival submission of both sides, perused the material held on record and considered the legal precedents referred by Ld. AR. Having considered arguments of both sides and after perusal of the documents filed in Paper-Book as well as Written-Submission filed by Ld. AR to which our attention has been drawn, we find that the assessee is having ownership of agricultural lands and also sold agricultural produce in market. The assessee has filed some sample copies of pakka bills/ documents of firms named M/s Maarewa Sugars Pvt. Ltd. (sugar division), M/s Chaturbhuj Kela Group, M/s Rajlaxmi Kela Group, M/s Mahalaxmi Toll Kanta, etc. Although these are few bills which do not aggregate to the income of Rs. 21,10,298/- but the assessee himself accepts that these are few bills only and he being agriculturist is unable to maintain complete record/bills of entire sales, more particularly the crops directly sold to the customers. We also find that the assessee is having agriculture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istration is the adangal extract maintained by the Village Administrative Officer. Beyond this, the assessee cannot produce any evidence for establishing the cultivation. Ld. AR submitted that against the cash-deposits of Rs. 33,91,841/-, the assessee has already submitted the Bills / Vouchers of Rs. 24,49,148/- which is about 72% and the difference is 28% only. Ld. AR submitted that the assessee s explanation that he could not maintain Bills / Voucher for sale of a part of the crop made directly to consumers, is a reasonable explanation and it must be accepted holistically having regard to the fact that the assessee is a renowned agriculturist who has received so many certificates, awards and appreciation from Govt. for his dedicated engagement in agricultural activities. XXX 8. Lastly the Ld. AR stressed that the assessee is a full time agriculturist as is evident from several certificates and awards received and news items published in the media. Ld. AR submitted that the assessee does not have any income except agricultural income. Ld. AR submitted that when there is no source of income except agricultural income, it is but natural that the assessee has made cash-deposits in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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