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2023 (11) TMI 978 - ITAT CHENNAIUnexplained money taxable u/s. 69 - unexplained cash deposits in specified bank notes during demonetization period - extent of land held by the assessee and deriving income from agricultural operations during demonetization period - HELD THAT:- When the assessee is having sufficient land holding and also proved carrying out agricultural operations, then in our considered view the AO ought to have accepted the explanation of the assessee regarding source of income for cash deposits during demonetization period, more particularly when the Assessing Officer has accepted partial explanation of the assessee and allowed relief to the extent of Rs. 2,50,000/- towards cash deposits during demonetization period. Just because, the assessee did not file his return of income for earlier assessment years, the available source in the form of agricultural income cannot be disputed. The filing of return in earlier years is hardly depending upon the taxable income of the assessee for those assessment years. In case the assessee does not have any taxable income, he need not to file income tax returns for those assessment years, even if he had earned agricultural income. Therefore, rejection of explanation furnished by the assessee, by the AO on the basis of non-filing of income tax return for earlier period is not acceptable. Coming back to the evidences filed by the assessee in support of claim for source for cash deposits. Although, the assessee claims to have filed details of land holding, cash receipts for sale of agricultural products, but could not file complete details to explain cash deposits of Rs. 11,54,500/-. Since, neither the AO nor the assessee could prove their case with relevant evidences and reasons, we are of the considered view that the only option left with us is to settle the dispute between the assessee and the Assessing Officer, by estimating source for cash deposits during demonetization period. We, therefore considering the extent of land held by the assessee and other evidences filed during the course of assessment proceedings, we are of the considered view that, credit for agricultural income to the extent of Rs. 6,54,500/- needs to be given to the assessee. Thus, we direct the Assessing Officer to allow credit for source to the extent of Rs. 6,54,500/- out of agricultural income earned by the assessee for the impugned assessment year and balance amount of Rs. 5,00,000/- to be treated as unexplained money taxable u/s. 69 of the Act. Assessee gets partial relief .
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