9911796707
TMI Blog2017 (7) TMI 912X X X X Extracts X X X X X X X X Extracts X X X X ..... filed his return of income on 24.04.2009 declaring total income of Rs. 1,75,865/- and agricultural income of Rs. 7,50,900/-. During the course of assessment proceedings, the A.O observed from the bank account maintained with State Bank of Patiala and Agriculture Loan Account at Allahabad Bank that the assessee is having various cash deposits and withdrawals during the period. On being questioned by the A.O, it was explained that the entire agriculture receipts were deposited in the savings bank account at State Bank of Patiala. On a query regarding source of cash deposits of Rs. 4,29,000/- made on 6th December 2008 in his S.B. A/c at State Bank of Patiala, Khatima, the assessee explained that this amount pertained to agriculture produce of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he is principally engaged in agricultural activities and he is not aware of taxation provisions and their implications. He is not commercially and technically literate to provide details of bank transactions as required by the A.O. He does not maintain books of accounts like other industrialist and businessman. It was also explained that for obtaining VISA, the assessee had to maintain his bank balance in the bank account as per the guidance of travel agents. These borrowings were subsequently returned also. The assessee was at no point of time the owner of these funds. It was further submitted that the assessee does not remember and is not having any details of the persons who had given funds for deposits in the bank account. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct that withdrawals from these bank accounts could well be placed back in them and therefore, it amounted to double addition. However, the ld. CIT(A) was not satisfied with the above explanation given by the assessee. He observed that the assessee could not fully explain the cash deposit of Rs. 4,29,000/-. According to him, there is no visible error in the A.O's actions as far as this addition is concerned since the explained portion has been given due credit. He accordingly confirmed the addition of Rs. 3 lakhs made by the A.O. The assessee is in appeal against this addition. 6. So far as the addition of Rs. 78,40,000/- is concerned, he observed that undisputedly the assessee has concealed one bank account from the department which came t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, he drew attention of the Bench to the agricultural land held by the assessee. He submitted that the assessee is having agricultural land at village Ulani and Village Majgami both in Tehsil Khatima. The assessee is mainly engaged in agricultural activity apart from leased car income from Krishi Utpadan Mandi Samiti, Khatima. Apart from the land holding, the assessee also carries out agricultural activities on the land belonging to his brothers who are staying abroad. The assessee has also taken certain land from others on contract basis for carrying out agricultural activities. He submitted that the entire income of the assessee is from agricultural activities. Therefore, notwithstanding that the assessee was unable to explain the source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed peak credit and sustained the amount of Rs. 18,51,368/- which is unjustified under the facts and circumstances of the case. He, accordingly submitted that the order of the A.O be restored and the order of the ld. CIT(A) be set aside. 9. We have considered the rival arguments made by both the sides, perused orders of the A.O and the ld. CIT(A) and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. So far as addition of Rs. 3 lakhs is concerned, we find the same was added by the A.O on account of cash deposit made by the assessee on 6.12.2008 in his SB Account maintained with State Bank of Patiala, Khatim. Out of total cash deposits of Rs. 4,29,000/-, it was explained by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs. The above bank account came to light only through AIR information. Therefore, the assessee cannot explain the non disclosure of the said bank account as ignorance of law or that he was not conversant with the intricacies of accountancy or tax proceedings. However, it is also a fact that the said bank account contains both deposits as well as withdrawals. It is an accepted principle that when the assessee is unable to explain the deposits in a particular bank account, the entire deposits cannot be added to the total income and only the peak credit has to be made when there are both cash deposits and cash withdrawals. In the instant case admittedly, there were both cash deposits as well as cash withdrawals on various dates. Therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
