TMI Blog2015 (12) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee, Sh. Amarjit Singh. Accordingly, the addition confirmed by the Ld. CIT(A) is restricted to ₹ 5,87,500/- in view of our findings hereinabove. As regards the arguments by the Ld. Counsel for the assessee that the assessee is having only source of income as salary income or agricultural income and the deficit so arisen should be treated as sale proceeds of the agricultural land and not to be accepted for the reason that the assessee had never treated the said deficit as agricultural income in his cash flow statement or recasted cash flow statement before any of the authorities below or even before us. Also in the absence of any cogent explanation or any evidence or arguments made by the Ld. Counsel for the assessee, the decision of Hon'ble Supreme Court in the case of Smt. P.K. Noorjahan vs. CIT (1997 (1) TMI 6 - SUPREME Court) cannot help the assessee. Accordingly, the AO is directed to sustain the addition of ₹ 5,87,500/- and is directed to delete the rest of the addition amounting to ₹ 5,87,500/-. Thus, the appeal of the assessee is partly allowed - ITA No. 86 of 2015 (O&M) - - - Dated:- 29-10-2015 - MR. AJAY KUMAR MITTAL AND MR. SHEKHER DHA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issued. The Assessing Officer vide order dated 16.11.2011 (Annexure A-1) assessed the income of the assessee at ₹ 43,86,580/-. During the course of assessment proceedings, the Assessing Officer, inter alia, made addition of ₹ 42,00,000/- which was deposited in S/B A/c No. 114848 with Allahabad Bank, Moga branch as 'unexplained cash credit' under Section 68 of the Act. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [for brevity the CIT(A) ]. The CIT(A) vide order dated 28.2.2013 (Annexure A-2) partly allowed the appeal and sustained the addition of ₹ 11,75,000/- towards unexplained investment with respect to purchase of the new agricultural land. Still dissatisfied, the assessee filed an appeal before the Tribunal who vide order dated 31.10.2014 (Annexure A-3) partly allowed the appeal and restricted the addition of deficit of ₹ 11,75,000/- sustained by the CIT(A) to ₹ 5,87,500/-. Hence, the present appeal by the assessee. 3. Learned counsel for the assessee submitted that the findings recorded by the authorities below are perverse, bad and against the record. It was further submitted that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant thereto, the substantial amounts were deposited by him in his bank accounts and the same were utilized towards purchase of further agricultural land. The CIT (A) forwarded the said application to the Assessing Officer for remand report. After receiving the remand report and considering the submissions of the assessee, the CIT(A) admitted the said application holding that the cash deposits in the Allahabad bank account stand explained on the basis of amounts received by the assessee as per the registered sale deeds. However, the CIT(A) on finding a negative cash balance on 23.10.2008 amounting to ₹ 11,05,000/- and ₹ 70,000/- on 31.10.2008 (totalling ₹ 11,75,000/-) confirmed the said addition made by the Assessing Officer holding that the investment had been made by the assessee without having availability of explained cash in terms of receipt of sale consideration. The relevant findings recorded by the CIT(A) in paras 8 and 9 read thus:- 8. I have considered the facts of the case, the observations of the Assessing Officer in the remand proceedings, the submissions of the AR during the appellate proceedings and the rejoinder on the Assessing Officer's re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itional evidence was allowed to be admitted by the Hon'ble High Court especially when the evidence was in the shape of sale deeds, certificates from banks and copies of bank accounts. Therefore, the additional evidence is allowed to be admitted. 9. The recasted cash flow statement and the objections to the same by the Assessing Officer during the remand proceedings have been considered and it is seen that the cash deposits in the Allahabad bank account stand explained on the basis of amounts received by the assessee as per the registered sale deeds. However, there is a negative cash balance on 23.10.2008 to the tune of ₹ 11,05,000/- and ₹ 70,000/- on 31.10.2008 which means that the investment has been made by the assessee without having availability of explained cash in terms of receipt of sale consideration. The addition made by the Assessing Officer is therefore confirmed to the tune of ₹ 11,75,000/- being the amount that had been invested in the purchase of agricultural land for which no corresponding availability of cash has been explained. 7. On further appeal by the assessee, the Tribunal restricted the addition of ₹ 11,75,000/- confirmed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax in toto shall fall on the assessee. Accordingly, the deficit of ₹ 5,87,500/- is on account of the assessee and the other deficit of ₹ 5,87,500/- is on account of brother of the assessee, Sh. Amarjit Singh. Accordingly, the addition confirmed by the Ld. CIT(A) is restricted to ₹ 5,87,500/- in view of our findings hereinabove. 8. As regards the arguments by the Ld. Counsel for the assessee that the assessee is having only source of income as salary income or agricultural income and the deficit so arisen should be treated as sale proceeds of the agricultural land and not to be accepted for the reason that the assessee had never treated the said deficit as agricultural income in his cash flow statement or recasted cash flow statement before any of the authorities below or even before us. Also in the absence of any cogent explanation or any evidence or arguments made by the Ld. Counsel for the assessee, the decision of Hon'ble Supreme Court in the case of Smt. P.K. Noorjahan vs. CIT (supra) cannot help the assessee. Accordingly, the AO is directed to sustain the addition of ₹ 5,87,500/- and is directed to delete the rest of the addition amounting t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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