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2018 (12) TMI 1064 - AT - Income TaxAddition of cash deposit as income from an unexplained source - Held that:- CIT(A) rejected the contention of the assessee that the cash was deposited out of the cash withdrawal from the bank without adducing the cogent reasons. The cash withdrawal has not been doubted by the authorities below, and nothing has been brought on records suggesting that the cash withdrawn from the bank has been incurred either as revenue expenses or capital expenses. In the absence of any documentary evidence, we can safely presume that the cash withdrawn from the bank was available with the assessee which was subsequently deposited with the bank. Therefore, we cannot treat the same as undisclosed income of the assessee. As regards the loan from the remaining parties, we note that both of them claimed to have generated agriculture income. But we find that such agriculture income was not declared in the income tax return. It was the duty of the assessee to disclose the agriculture income in return for the purpose of the correct calculation of tax liability under the income tax Act. In view of the said clear provisions in section 4 of the Act Chapter II and section 2 of the Finance Act, 2011, we have no doubt in our mind that agricultural income of an assessee has to be taken into consideration for the purpose of determining rate of tax that is applicable to his income. In the absence of disclosure of agriculture income in the income tax return, we cannot believe that the parties have generated agriculture income. With regards to other documents filed by the assessee in support of the cash loan transactions, we note that all these are internal and self-generated documents. Therefore, we are reluctant to place our reliance on the submission of the assessee. We note that the bank statement is not considered as books of accounts. Therefore, any sum found credited in the bank passbook cannot be treated as an unexplained cash credit. However, we note that the above order was not produced before the authorities below. Therefore, in the interest of justice and fair play we are inclined to restore this matter to the file of AO for fresh adjudication in accordance with the provisions of law and after considering the ratio laid down by the tribunal in the case of Rameshbhai Somabhai Patel (2004 (1) TMI 707 - GUJARAT HIGH COURT). Thus the ground of appeal of the assessee is allowed for statistical purposes.
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