TMI Blog2023 (10) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... Cash gift receipt - AO has rejected the same by observing that the assessee has not submitted other cooperative evidence with regard to the identity, creditworthiness of the person giving advance gift - The copy of gift and copy of confirmation in the form of affidavit clearly reveals that Smt. Rajbati at the time of giving cash gift to the assessee and his brother Shri Krishna Kumar Sharma executed gift deed on stamp paper and again confirm the same fact in the affidavit sworn on 04.11.2019, therefore, the identity and capacity of cash gift provider cannot be disputed. AO was not satisfied with the explanation and documentary evidence filed by the assessee then he could have show caused the assessee asking him to produce the donor or he could have called the donor Smt. Rajbati directly by issuing summon/notice u/s 131 or 133(6) of the Act but there was no such exercise by the AO before dismissing the contention of the AO and dismissing the claim of assessee about receipt of cash gift from his sister in law Smt. Rajbati. It is not the case of the AO that the assessee has rooted his own unaccounted income through his sister in law in the garb of gift. Therefore we agree w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirming the addition of Rs. 22,52,200/- is bad in law and against the facts and circumstances of the case and without considering the material placed on record and by recording incorrect facts and findings. 4. The Ld. Assessees Representative submitted that the assessee Shri Yogendra Kumar Sharma was a practicing Advocate and after his death on 10.05.2021 this appeal is being pressed through legal heir his wife Smt. Madhu Sharma. The Ld. Counsel submitted that although the Assessing Officer has made addition of Rs. 22,52,200/- on account of cash deposit to the two bank accounts of deceased assessee maintained with Axis bank and HDFC Bank but, in fact, there were total cash deposits of Rs. 18,78,000/- to the said two bank accounts of the assessee and this fact is also clear from the reasons recorded by the AO for initiation of reassessment proceedings, wherein he has noted cash deposits amounting to Rs. 12,67,000/- and the assessee in all fairness submitted before the AO that the total cash deposits are Rs. 18,78,000/- and this fact has also been noted by the AO in para 3.1 of assessment order. 4.1 The Ld. Counsel further submitted that since assessee was a legal practitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel also drawn my attention towards pages 52 to 54 of assessee s paper book, wherein an agreement executed on Rs. 5.00 stamp paper and along with receipt has been placed. He further submitted that under said agreement to sale of plot the assessee also received Rs. 2 lakhs cash on 11.02.2011 from Shri Krishna Kumar Sharma and thus, the AO was not correct in dismissing the contentions of assessee that he received Rs. 6 lakhs from his brother on account of agreement to sale of plot. 7. The Ld. Counsel thus, submitted that when the actual cash deposit to the said two banks was noted by the AO in para 3.2 as Rs. 18,78,000/- then the AO as well as the Ld.CIT(A) was not correct and justified in making addition of much higher amount of Rs. 22,52,200/- without any basis. 8. The Ld. AR thus, submitted that if the amount of professional receipt of Rs. 5,18,500/-, cash withdrawals of Rs. 6,92,500/-, agricultural income of Rs. 70,700/-, cash gift of Rs. 2,50,000/- and advance of Rs. 4 lakhs on 30.04.2010 and Rs. 2 lakhs on 25.02.2011 as cash advance against agreement to sale of plot is considered and added to the opening cash balance of Rs. 1,30,250/- then the total cash deposit of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above noted factual position, first of all, I note that the Ld. Sr. DR has not disputed that there were cash professional receipt of Rs. 5,18,500/- and assessee also withdraw cash of Rs. 6,92,500/- from the said two bank accounts totaling to Rs. 12,11,000/- in addition to opening cash balance of Rs. 1,30,250/-. The issue remains about the exempt agricultural income of Rs. 70,700/- which has not been allowed by the AO. From para 3.1 of assessment order, I further note that the AO has noted that the assessee has furnished copy of land records dated 04.04.2015 issued by Tehsildar Jewar but he dismissed the same by merely observing that the said document did not contain details of crops grown by the assessee and amount received on sale of crop during FY 2010-11. We are in agreement with the contention of Ld. AR that an amount received by the assessee on sale of crop is never mentioned in the Revenue records and thus, the basis taken by the AO for rejecting factum of cash consideration received against sale of crop is not correct and sustainable. Undisputedly, the assessee has shown exempt agricultural income of Rs. 70,700/- in his return of income which cannot be disputed merely on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chaser to the assessee within two years from the date of the agreement. In this regard the Ld. AR has relied on the copy of an agreement to sale of plot has been placed on record at pages 52 to 54 of assessee s paper book. The said explanation has been dismissed by the AO by observing that the signature and the writing on the said document was not verified as the assessee has not submitted any other details of Shri Krishna Kumar Sharma proving his identity, genuineness of the transaction and creditworthiness. The AO also dismissed second part of contention of assessee that the assessee on 25.02.2011 has also received cash of Rs. 2 lakhs from Shri Krishna Kumar Sharma and on the similar allegation. The Ld.CIT(A) also dismissed the contention of assessee upholding the conclusion of AO by observing that the assessee has not submitted the identity, genuineness and creditworthiness of Shri Krishna Kumar Sharma. 17. On the other hand, the Ld. Sr. DR has supported the orders of the authorities below to submit that the capacity and creditworthiness of Shri Krishna Kumar Sharma has not been established. 18. On careful consideration of submission, first of all I note that from the copy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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