TMI Blog2017 (4) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... duce evidence of sugar cane cultivation and sale of sugar cane. Before me also the assessee has failed to produce any evidence in this regard. Therefore, find no good and justifiable reason to interfere with the orders of the lower authorities and dismiss the ground of appeal of the assessee. Estimating the interest on term deposit in bank - as contended that interest income of fixed deposit was offered to tax by consistently following method of offering interest income to tax in the year of receipt - Held that:- When questioned by the Bench what is the evidence that the assessee has offered to tax the interest income on fixed deposit of ₹ 1,05,000/- in the year on receipt, ld Authorised Representative of the assessee expressed his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2009-10. The Assessing Officer did not accept the explanation of the assessee on the ground that all the returns of income were filed by the assessee after survey was conducted in the premises of the firm on 3.3.2009 and added ₹ 6,00,000/- to the income of the assessee as unexplained investment of the assessee. 4. On appeal before the CIT(A), the assessee submitted that he has sold his house for ₹ 21,00,000/- and paid tax of ₹ 91,956/- during the year under appeal. Out of the sale proceeds, he has invested ₹ 6,00,000/- during the year in appeal towards his contribution in the capital of the firm. Therefore, the addition of ₹ 6,00,000/- made by the Assessing Officer should be deleted. 5. The CIT(A) referr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer has not commented on the contention of the assessee that due to availability of the sale proceeds of his house of ₹ 21 lacs with him and the same was the source of investment in the capital of the firm. He observed that on consideration of the facts on record and from perusal of the bank account maintained with State Bank of India, Koraput, where the sale proceeds of ₹ 21 lakhs have been deposited in April, 2008, he was inclined to grant the benefit of availability of this amount for the purpose of making investment in the firm. He noted that as per the copy of the bank account available on record, amounts have been withdrawn in cash against deposit of ₹ 21 lakhs only on 21.8.2008 onwards and before that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,400/-. The Assessing Officer made enquiries through Income tax Inspector who reported that the assessee could not produce any details of such landed property and other details relating to agricultural income. Therefore, the Assessing Officer did not accept the claim of the assessee about agricultural income and made addition of ₹ 60,240/- as income from other sources. 12. Before the CIT(A), the assessee submitted that he carried out agricultural activity and received income from the same for ₹ 60,240/-. He furnished details like ownership of the land, agricultural activity carried out and yield received etc. The Assessing officer rejected the claim and alleged that the assessee has not furnished any details. He relied on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led a lease deed ostensively showing that he had taken agricultural land on lease from 1.2.2008 to 31.9.2009 for ₹ 4,000/-. The assessee stated that he produced sugar cane on such leased land and the income was derived therefrom. He observed that most of the family members of the assesse, whose appeals are being disposed of namely, Natabar Nath, Smt. Suna Nath, Pradip Kumar Das, Khetrabasi Nath, Batakrushna Nath and Ranjan Kumar Nath have all claimed that they had derived agricultural income by way of sale of sugar cane out of leased land. If their contentions are accepted then the total sugar cane apparently sold by the family members of the assessee will exceed ₹ 8 lakhs. He observed that it was surprising that the assessee wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... val submissions and perused the orders of lower authorities and materials available on record. In the instant case, the Assessing Officer observed that the assessee had fixed deposits of ₹ 1,05,000/- with Micro Finance. He estimated the interest @ 10% on the deposit on accrual basis and added ₹ 10,500/- to the income of the assessee. 21. On appeal before the CIT(A), the assessee argued that the assessee has shown income from fixed deposit on receipt basis as it was following cash system of accounting. The interest income is deemed to accrue only on the date of due date of fixed deposit. The interest income is not calculated year to year. He relied on the decision of Hon ble Bombay High Court in the case of DIT vs. Credit Suis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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