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2022 (7) TMI 845 - AT - Income TaxAssessment u/s 153A - As contended that the satisfaction recorded u/s 153C of the Act was vague and does not satisfy the well settled parameters in this regard - HELD THAT:- As we notice that the Ld CIT(A) has addressed both the issues by his detailed order, which we find to be reasonable and in accordance with law. Accordingly, we reject both the legal grounds urged by the assessee. Characterization of income - addition of agricultural income declared by the assessee treating it as income from other sources - HELD THAT:- Assessee is holding agricultural lands and the fact that cultivation was going thereon was also accepted. There may be genuine difficulty for the assessee in producing bills of past years, when the assessments were completed in 2008, in view of the fact that the agriculture market is mostly unorganised in our Country. We are also of the view that it is unreasonable not to accept the availability of agricultural income in AY 2001-02 to 2004-05, when the assessee is holding agricultural land. In fact, the AO has accepted part of agricultural income in AY 2002-03 and 2004-05.Accordingly, we are of the view that there is no reason to restrict the agricultural income to 40% of the bills produced. The generation of agricultural income without bills cannot be ruled out. Since there was failure on the part of the assessee in substantiating the quantum of agricultural income, in the facts and circumstances of the case, we are of the view that the entire income cannot be accepted. Accordingly, we are of the view that the agricultural income may be accepted to the extent of 70% of the amount declared by the assessee in all the years, i.e., from AY 2001-02 to 2007- 08.Accordingly, we modify the orders passed by Ld CIT(A) on this issue in all the years under consideration and direct the AO to accept agricultural income to the extent of 70% of the amount declared by the assessee in each of the years. Addition u/s 68 - AO noticed that the assessee has shown advance for purchase of a property - as submitted that the said property was proposed to be purchased jointly by the assessee along with others - HELD THAT:- As submission of the assessee that the property was proposed to be purchased jointly and the amount of Rs.8.00 lakhs was contributed by other co-owners for the land proposed to be purchased, meaning thereby, it is not a case of loans being taken by the assessee. If that is found to be true, in our view, the assessee cannot be assessed u/s 68 of the Act in respect of this amount, since the amount of Rs.8.00 lakhs cannot be considered to be investment made by the assessee. The factual position in this regard is required to be examined. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and restore the same to the file of the AO for examining it afresh. If the assessee is considered to have made the entire investment of Rs.13.00 lakhs, then the assessee is liable to prove the cash credits of Rs.8.00 lakhs in terms of sec. 68 of the Act. Since the assessee has failed to prove the cash credits, the addition of Rs.8.00 lakhs is liable to be confirmed. On the other hand, if the assessee is not considered to have made the investments to the extent of Rs.8.00 lakhs, then the same is not assessable u/s 68 - we restore this issue to the file of AO. Unexplained investment - HELD THAT:- As assessee had declared agricultural income which has been accepted partly as agricultural income and partly as income from other sources. We notice that the investment of Rs.24,000/- also stands explained by the amount of agricultural income. Accordingly, we direct deletion. Unexplained investment in KVPs - HELD THAT:- As factual aspects have not been properly appreciated by the tax authorities. We also noticed that the addition has been made by computing the possible value of investment on the basis of interest income declared by the assessee. If the investment has not been made during the year under consideration, there is no requirement of making any addition. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and restore the same to the file of AO for examining the submissions of the assessee and for taking decision in accordance with the law in the light of discussions made supra. Purchase of galas and claimed the sources to be amount received from her husband - HELD THAT:- If the investments have been made out of cash withdrawals from Abhinav Bank and the funds available in the banks have been accepted, in our view, such withdrawals could be accepted as sources. In that case, there is no requirement for making any addition as unexplained investment. However, it is required to be shown that the funds available with Abhinav Bank has been accepted by the AO. We notice that relevant details are not available on record. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and restore the same to the file of AO for examining it afresh. Unexplained sundry creditors balance - HELD THAT:- In the interest of natural justice, we are of the view that the assessee may be provided with one more opportunity to prove the sundry creditors by obtaining confirmation from them. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and restore the same to the file of AO. After affording adequate opportunity to the assessee, the AO may take appropriate decision in accordance with law. Addition of payment of LIC premium as unexplained investment - HELD THAT:- As the assessee claimed that he has withdrawn a sum of Rs.51,480/- from his capital account and the said withdrawal was used to make the LIC payment. Since the explanation was found to be too general, the Ld CIT(A) confirmed the disallowance. In our view also, the explanation so furnished by the assessee does not explain the sources for making LIC payment - Accordingly, we confirm this addition. Addition relating to the value of computer and domestic equipments shown in Balance sheet - HELD THAT:- We notice that the AO has accepted the genuineness of deposit of Rs.1,00,000/-. Accordingly, we are of the view that the aggregate amount of Rs.1,90,000/- would explain the sources for making investments in computer and domestic appliances to the extent of Rs.1,54,750/-. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and direct the AO to delete the addition of Rs.1,00,000/- confirmed by Ld CIT(A).
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