2023 (3) TMI 356 - AT - Income Tax

Unexplained cash deposits - Addition u/s 68 - HELD THAT:- The asseessee is an agriculturist. The assessee owns more than 20 acres of land individually and jointly with his family at village Bhangala. The copy of ‘Jamabandi’ mentioning the ‘khasara number’ and shareholding details. The summary of Landholding details is enclosed separately - That the appellant has filed the returns for subsequent years in which agriculture income has been declared and accepted by the department.

The copy of return for A.Y. 2012-13 - The nature of income of the assessee is properly depicted which is from agriculture. The evidence was submitted before the ld. CIT(A) by the assessee by a letter dated 13/02/2021. Jamabandi/Girdawari represents the nature of income of assessee as agriculturist. Assessee properly raised the ground related addition U/s 68 of the Act without maintaining the books of accounts. The assessee confirmed that as an agriculturist is not maintain books of accounts for the impugned year. We fully relied on the order of Smt. Ramilaben B. Patel [2018 (12) TMI 1064 - ITAT AHMEDABAD] Mere possession of pass book cannot be treated as books of accounts. We respectfully relied on the order of CIT vs Bhaichand H. Gandhi,[1982 (2) TMI 28 - BOMBAY HIGH COURT] - The application of Section 68 is uncalled for the assessee.

In our considered view the cash deposited by assessee is income from agriculture which is not come under purview of the taxable income. The opening balance of cash was also not considered during determination of peak by the ld. AO. We set aside the order of revenue authorities. So, the entire addition is quashed.