TMI Blog2020 (11) TMI 870X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in taking the above said view in the facts and circumstances of the case. A.R submitted that the assessee has repaid the loan taken from Shri Prabhulingappa subsequently. It is well settled principle that the repayment of cash credit would not prove the genuineness of cash credit. It is the responsibility of the assessee to prove three main ingredients, viz., identity of the creditor, credit worthiness of creditor and genuineness of the transaction. In the instant case, the assessee has failed to prove the credit worthiness fully and also the genuineness of the transactions. Accordingly, in the facts and circumstances of the case, we are of the view that the Ld CIT(A) has taken a reasonable view of the matter - Decided against assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dingly, he rejected the confirmation letter. Since the assessee has failed to prove the cash credit loan of ₹ 19.50 lakhs, the A.O. assessed the same as income of the assessee u/s 68 of the Act. 3. In the appellate proceedings, the assessee submitted before Ld. CIT(A) that Shri Prabhulingappa is holding agricultural land and earned agricultural income. He submitted that the impugned loan was given out of his agricultural income. The assessee also furnished the details of land holdings. The Ld. CIT(A) noticed that the lands were held by Shri Prabhulingappa, his wife and his brother. It was submitted that the brother of Shri Prabhulingappa has given GPA to the assessee. The Ld. CIT(A) examined the details, the nature of crops grown a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prayed that the matter may be restored to the file of the A.O. for examining it afresh. 5. The Ld. D.R., on the contrary, submitted that the factum of filing of return of income by Shri Prabhulingappa has been held to be an afterthought by Ld. CIT(A). She further submitted that the Ld. CIT(A) has analysed the facts relating to the issue and has accordingly estimated the probable savings that would be available with Shri Prabhulingappa. She submitted that even though the brother of Shri Prabhulingappa has given power of attorney to him, it cannot be presumed that the agricultural income belonging to Shri Umesh, brother of Shri Prabhulingappa was not given to Shri Umesh. Accordingly, she submitted that the Ld CIT(A) has rightly allocated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 30-5o lakhs per annum from the cultivation of areca nut over the land. He has further claimed that in the financial year 2013-14 he had obtained ₹ 25,71,4481- from sale of areca nuts and around 9 lakhs from sale of other produce like banana, mango, chikku, betel leaf, coconut etc. Therefore, the total income from agriculture in the Financial Year 2013-14 is claimed to be ₹ 34,71,4481- from 16.88 acres. 9. The claim of the appellant is verified from various sources on internet. It is found that the average yield of areca nut per acre in Karnataka is around 8 quintals. The average sale price for areca nuts during Financial Year 2013-14 is around ₹ 25,00o per quintal. Therefore, the gross receipt from a total land of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.06 acres ₹ 6,18,488 ₹ 2,16,469 Umesh KN (Brother) 6.10 acres ₹ 9,29,256 ₹ 3,25,237 Total 16.88 acres ₹ 25,71,448 ₹ 9,00,000 13. However, it is observed that despite having such high receipts from agricultural activities, he had not filed his return of income within the time prescribed. 14. He filed his return of income only during the assessment proceedings in the case of M/s. Media 36o Degree Services India Private Limited were started. On being enquired about why he did not file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.92 Lacs]. Further, the entire amount of ₹ 13,81,998/- cannot be saved by him. Assuming that a minimum of ₹ 20,000 per month is required for his basic sustenance, Hence, an amount of ₹ 2,40,000(20,000*12) is deducted as the minimum amount that would have been spent by him on his sustenance. Therefore, the savings left with him is the spare money left after deducting his expenses which amounts to ₹ 4,52,000 (₹ 692000- ₹ 2,40,000). Similarly, some saving from earlier year may be available. In view of above, this is estimated to be ₹ 2,00,000. 18. In the facts and circumstances of the case, it is concluded that Shri. Prabhulingappa is left with only ₹ 6,52,000 savings which he could le ..... X X X X Extracts X X X X X X X X Extracts X X X X
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