TMI Blog2019 (2) TMI 1512X X X X Extracts X X X X X X X X Extracts X X X X ..... akhs out of ₹ 49,22,000/- deposited in various Bank accounts. - Decided against assessee Disallowance u/s. 80C - payment of tuition fees - HELD THAT:- The deduction claimed u/s. 80C is to be allowed u/s. 80C(2)(xvii) of the Act which states that tuition fee/education fee paid by a parent towards education of his/her children is entitled for deduction. The assessee is entitled for deduction to the tune of ₹ 1.5 lakhs under this provision subject to the provision of section 80C(4)(c) of the Act on furnishing the requisite details. Regarding deduction u/s. 80C, the assessee has not produced any details of payment of tuition fees for the year under consideration before AO. As such, we remit this issue to the file of the Assessing Officer with a direction to the assessee to furnish the details of payment of tuition fees before the Assessing Officer and thereupon decide the same. With regard to deduction u/s. 80TTA, the assessee has also not furnished the details of interest income earned on saving Bank account. As such, we remit this issue to the file of the Assessing Officer with a direction to the assessee to provide necessary details. These grounds of appeal of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E Ground nut cultivation land sold on 25.02.2013 18,00,000/- F Agricultural loan taken 1,25,00,000/- G Loan taken from George Thomas (Dubai) 1,00,000/- H Loan taken from Tom K Varghese (Kuwait) 1,00,000/- I Loan taken from Mrs. Mary Sleeba (London) 1,00,000/- 3.2 The Assessing Officer did not accept the above explanation of the assessee. The Assessing Officer found that the assessee had not explained the source of cash deposits. The Assessing Officer observed that the assessee gave vague replies without any supporting evidences and even though the assessee was claiming to have agricultural income, he had not declared the same in his return of income. The Assessing Officer found that the assessee had not furnished any evidence of having generated income during the year even if it was not declared in the return of income. The professional income was also not declared in the return of income. Under these circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer lawfully and had given sufficient opportunities to the assessee for giving explanations to the show cause notices issued by him. It was observed that the assessee was not well versed with the processes of Income-tax assessment and therefore, the response of the assessee was full of anomalies and contradictions which have been brought on record by the Assessing Officer in the assessment order passed by him. According to the CIT(A), the Assessing Officer had examined cash deposit of ₹ 49,22,000/- and not satisfied with the explanation of the assessee, treated the same as unexplained cash credits and added the same to the total income of the assessee u/s 68 of the I T Act. The entire cash was deposited on 06.3.2014 and 7.3.2014. The CIT(A) gave the summary of assessee's explanation given at the time of assessment which is as under: i) The source of cash deposit is agricultural and professional income. ii) He had sold land and sale consideration of the same were deposited in the Bank. iii) He has substantial rubber cultivation and paddy cultivation. iv) He also had ground nut cultivation. v) He had taken agricultural loan amounting to ₹ 1.25 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ished properly. On the other hand, the CIT(A) observed that the Assessing Officer had concentrated on deposits made only on 06.3.2014 and 07.3.2014 and he had chosen to ignore deposits and withdrawals made during rest of the financial year 2013-14. The Assessing Officer had not disputed the fact that the assessee is basically an agriculturist, having substantial holding of land, and even though he had not declared any agricultural income in his Return of Income filed, he may be earning agricultural income. According to the CIT(A), under the existing provisions of Income Tax Act, agricultural income becomes significant for applying rate of Income Tax, though the agricultural income per se, is exempt from the incidence of tax. It was also seen that the A.O. had not made any efforts to find the source from which the assessee would have earned such cash income. It was observed that the Assessing Officer also did not make any efforts to investigate, whether the assessee was actually earning any agricultural income. The Assessing Officer also did not give any credit for earlier cash withdrawals made by the assessee and claimed to have been re-deposited. The CIT(A) was of the view that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 10,000/- on savings Bank account. As such, he was entitled for deduction u/s. 80TTA of the Act. In our opinion, the deduction claimed u/s. 80C is to be allowed u/s. 80C(2)(xvii) of the Act which states that tuition fee/education fee paid by a parent towards education of his/her children is entitled for deduction. The assessee is entitled for deduction to the tune of ₹ 1.5 lakhs under this provision subject to the provision of section 80C(4)(c) of the Act on furnishing the requisite details. Regarding deduction u/s. 80C, the assessee has not produced any details of payment of tuition fees for the year under consideration before AO. As such, we remit this issue to the file of the Assessing Officer with a direction to the assessee to furnish the details of payment of tuition fees before the Assessing Officer and thereupon decide the same. 8.1 With regard to deduction u/s. 80TTA, the assessee has also not furnished the details of interest income earned on saving Bank account. As such, we remit this issue to the file of the Assessing Officer with a direction to the assessee to provide necessary details. These grounds of appeal of the assessee are partly allowed for statisti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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