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2023 (3) TMI 1353 - AT - Income TaxAgricultural income - assessee produced agricultural income certificate from the Village Revenue Officer (VRO) in support of his claim before the AO - CIT(A) restricted the agricultural income for the agricultural land to the extent of Ac.23.91 cnts, taking into account the proposition that any agricultural land with commercial / cash crop will fetch net income of Rs.20,000/- per acre - AR contended that the AO without verifying the records and without bringing any contrary facts on record, rejected the agricultural income of the assessee - HELD THAT:- CIT(A) viewed that it is an accepted proposition that any agricultural land with commercial / cash crop would fetch net income of Rs.20,000/- per acre. The agricultural land of the assessee, being Ac.23.91 cnts, the CIT(A) viewed that it is reasonable to earn Rs.4,78,200/- (i.e. Rs.20,000/- x Ac.23.91 cnts) as the ownership was not in doubt. CIT(A) therefore, directed the AO to restrict the addition to Rs.4,78,200/- and disallow Rs.71,800/-. We find, that the Ld.CIT(A) has rightly estimated the agricultural income of the assessee basing on the valid proposition. Hence, we do not find any infirmity in the order passed by the Ld.CIT(A) and dismiss the appeal of the assessee on this ground. Unexplained cash deposits - HELD THAT:- Since the assessee has no regular source of income and could not explain the sources of cash deposits, the assessee treated the amount of Rs.1,98,000/- as unexplained income and brought to tax - HELD THAT:- After verifying the return of income filed by the assessee admitting income from auto consultancy and agriculture and bank account statements, CIT(A) has rightly considered the cash deposits of Rs.15,000/- as explained, as in the earlier years, the agricultural income earned by the assessee is reasonable and treated the cash deposits to the extent of Rs.1,33,000/- as unexplained. Since, the assessee could not furnish any corroborative evidence either during the appellate proceedings or before the Tribunal except the confirmation letter for the gift received, we are inclined to uphold the order passed by the Ld.CIT(A) and dismiss the appeal of the assessee on this ground. Investment towards insurance premium - assessee contended that insurance premium was made out of gross earnings received through agriculture and auto consultancy - HELD THAT:- AO has made an addition of cash deposit of Rs.90,000/- and the payment made to Insurance Company as unexplained. The bank statement shows that cash deposits were made on 12th and 13th and made cheque payment of Rs.90,000/- to the Insurance Company for insurance premium. Then only one addition should be made. Hence, the insurance premium amount of Rs.90,000/- cannot be sustained. Therefore, the AO is directed to delete the said amount of Rs.90,000/-. Hence, we set aside the order of the Ld.CIT(A) and allow the appeal of the assessee on this ground.
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