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2019 (12) TMI 1099 - ITAT INDOREAddition u/s 69 - unexplained cash deposits - HELD THAT:- CIT(A) did not accept opening cash balance on the ground that the assessee is not maintaining books of accounts, however, accepted the factum of sale of land earning of agricultural income and did not accept the contention that the amount so withdrawn was deposited in the bank account. We have considered the material available on record and perused the finding of the Ld. CIT(A) the undisputed fact is that the CIT(A) accepted the fact that assessee was having agricultural income and also sold a piece of agricultural land proceeds whereof was deposited in the bank account of the assessee. It is also not rebutted by the revenue that before making deposits of sum of ₹ 10,65,000/- on 18.07.2005. The assessee had withdrawn sum of ₹ 40,000/-, ₹ 5,000/-, ₹ 7,000/- and ₹ 11,00,000/- on 04.07.2005,09.07.2005, 12.07.2005 and 15.07.2005 from the same bank account. Hence, the cash available with the assessee was higher than the cash deposited on 18.07.2005. The revenue has not placed on record demonstrating that these sums were utilized for any other purpose. Therefore, we are unable to affirm the finding of the Ld. CIT(A) for sustaining this addition as made on the basis that purpose of withdrawal of specific sums was not given. In our view revenue should have brought some material suggesting that the money as withdrawn from the bank account was used somewhere else and it was not available with the assessee for making deposits. In absence of such facts Ld. CIT(A) ought to have accepted the source of deposit of ₹ 10,65,000/- on 18.07.2005. Hence, we direct the AO to delete this addition. In respect of the remaining addition it is noticed that the Ld. CIT(A) has not accepted the opening cash balance of ₹ 5,27,432/-. Looking to the fact that the assessee was having agricultural income and other source of income even if the opening balance is considered to be higher at least the assessee would be having cash on hand a sum of ₹ 3,00,000/- which appears to be reasonable. Hence, the assessing officer is directed to delete the addition of ₹ 3,00,000/- being available as cash in hand. Regarding higher consideration received in cash we are of the considered view that onus was on the assessee to prove that the cash was received in addition to sum mentioned in sale deed. Further, the provisions of section 50C would not help as same operate in the different field. The contention of the assessee is therefore rejected. Hence, out of addition of ₹ 16,04,000/- sustained by the Ld. CIT(A) we direct the AO to delete the addition of ₹ 13,65,000/-, and remaining addition of ₹ 2,39,000/- is sustained. Ground numbers 3 to 6 are partly allowed.
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