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2015 (12) TMI 978 - HC - Income TaxSource of the deficit investment made towards the purchase of new agricultural lands - Sole source - Held that:- The cash flow statement furnished by the assessee had rightly been admitted by the ld. CIT(A), which is not in dispute. As mentioned the ancestral agricultural land had been sold, which was held jointly by the assessee along with his brother Sh. Amarjit Singh and agricultural land, which has been purchased by the assessee along with his brother Sh. Amarjit Singh in equal share is also not in dispute. Therefore, the deficit of ₹ 11,75,000/- belongs equally to the assessee and his brother Sh. Amarjit Singh and assessee alone cannot be said to be liable for the entire deposit of ₹ 11,75,000/-. The argument of the Ld. DR that Power of Attorney by Sh. Amarjit Singh brother of the assessee had been given to the assessee, does not mean the deficit or levy of tax in toto shall fall on the assessee. Accordingly, the deficit of ₹ 5,87,500/- is on account of the assessee and the other deficit of ₹ 5,87,500/- is on account of brother of the assessee, Sh. Amarjit Singh. Accordingly, the addition confirmed by the Ld. CIT(A) is restricted to ₹ 5,87,500/- in view of our findings hereinabove. As regards the arguments by the Ld. Counsel for the assessee that the assessee is having only source of income as salary income or agricultural income and the deficit so arisen should be treated as sale proceeds of the agricultural land and not to be accepted for the reason that the assessee had never treated the said deficit as agricultural income in his cash flow statement or recasted cash flow statement before any of the authorities below or even before us. Also in the absence of any cogent explanation or any evidence or arguments made by the Ld. Counsel for the assessee, the decision of Hon'ble Supreme Court in the case of Smt. P.K. Noorjahan vs. CIT (1997 (1) TMI 6 - SUPREME Court) cannot help the assessee. Accordingly, the AO is directed to sustain the addition of ₹ 5,87,500/- and is directed to delete the rest of the addition amounting to ₹ 5,87,500/-. Thus, the appeal of the assessee is partly allowed
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