Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (3) TMI 858 - AT - Income TaxAdditions u/s. 69A r.w.s 115BBE - unexplained cash deposits in bank accounts - gift from mother-in-law - HELD THAT:- As find from the translated copies of the sale deed produced by the AR confirms the sale of two lands for Rs. 9 lakhs each. In view of the above, the claim made by the assessee that it is a gift from mother-in-law and it was deposited into the bank account on 30/07/2016 itself in our considered view is acceptable and allowed. Addition on account of sale of paddy, fertilizers and pesticides - AO has merely relied on the reported turnover as per VAT returns and has considered the submissions of the assessee as illogical. We find merit in the arguments of the Ld. AR that the assessee has acted as a mediator between the rice millers and the farmers for a commission and has routed the transactions through his account. This commission was also disclosed in the return of income filed by the assessee. We therefore are inclined to delete the addition made by the Ld. Revenue Authorities on account of sale of paddy. Unaccounted agricultural income - We find that the Ld. AO has not considered this exempt income as disclosed by the assessee in his return of income. AO has therefore erred in treating the agricultural income of Rs. 4 lakhs as unexplained. We therefore direct the Ld. AO to delete this addition as it has been properly explained and disclosed in the return of income filed by the assessee. Addition out of savings - Considering the submissions, this amount was out of surplus available with the assessee and which has been deposited into the bank account, we are inclined to direct the Ld. AO to delete the addition which was made out of the savings of the assessee. Addition of cash deposits made by the assessee into the bank account - Deposits during the demonetization period for Rs. 33,00,000/- in both the bank accounts by way of cash is out of the capital alleged to be introduced by the partners of the firm. In the absence of any substantiated evidence with regard to deposits of the cash into the assessee’s account instead of partnership firm’s account we could not accept that these deposits are from explained sources. We are therefore inclined to uphold the addition of Ld. Revenue Authorities to the extent of Rs. 33,00,000/- deposited by way of cash during the demonetization period and hereby confirm the order of the Ld. Revenue Authorities. Cash deposited during the demonetization period we find that these cash deposits in the bank account of the assessee arise out of the alleged cash contribution by the partners. Revenue Authorities have erred in disallowing the same cash deposits and we therefore direct the Ld. AO to delete the addition.
|