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2015 (10) TMI 1606 - AT - Income TaxAddition of unexplained cash credits - Held that:- We observe that once the land record proves this creditor’s land to be fertile, presumption rather goes in favour of the creditor that he is sowing crops and deriving agricultural income. The land record rather specifies the nature of the crop grown as well. Merely because he is a farmer not having enough documentary evidence of having sold the produce is no ground to dispute the aforesaid land revenue document. The other presumptions of collateral security is also a technical reason. The Assessing Officer appears to have applied business law principles in agricultural farming intricacies. We deem it appropriate to observe that merely because a farmer has pledged his land as a collateral security for obtaining same bank loan scheme does not necessarily mean that he is not having sufficient agricultural income. The third objection of large family being maintained on the same agricultural income is also without any basis. The authorities below have not done any homework or to inquire about sources of income in case of other family member; if any. Therefore, we hold that the impugned presumptions drawn in the course of assessment and affirmed in the lower appellate proceedings are without any supportive material. We accordingly hold that the assessee’s maternal uncle a farmer had sufficient means to advancing cash loan of ₹ 2 lacs in cash since not having a bank account. There is no material on record apart from these presumptions so as to doubt source/genuineness/creditworthiness of the assessee’s claim. Therefore, this 2 lac amount is held to be explained. For the balance sum of ₹ 8.5 lacs in case of other four creditors AO himself holds them to be assessee’s relatives. Therefore, identity of the creditors is not an issue here. They have also filed confirmations along with all revenue documents. The only difference that they have not appeared in person before the Assessing Officer. As already indicated the assessing authority proceeded mere assumptions and presumptions. It also raises similar reasons against these four creditors as well. In these circumstances, we observe that AO’s reasons in all four cases are identical to those raised in case of Shri Govindbhai decided hereinabove. We draw support therefrom. And accept assessee’s arguments herein as well and ignore technical reason of personal nonappearance of these four creditors. The assessee’s explanation regarding balance cash credit of ₹ 8.5 lacs is accepted. He gets relief in this appeal to the tune of ₹ 10.5 lacs. The balance addition of unexplained cash credit amounting to ₹ 14,135/- is confirmed. - Decided partly in favor of assessee.
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