TMI Blog2021 (4) TMI 1188X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee is allowed. - ITA No. 1133/Chd/2018 - - - Dated:- 12-4-2021 - N. K. Saini, Vice President And R. L. Negi , Member ( J ) For the Appellant : Deepak Aggarwal, Advocate For the Respondents : Meenakshi Vohra, Addl. CIT ORDER N. K. Saini , Vice President This is an appeal by the assessee against the order dt. 20/07/2018 of Ld. CIT(A)-1, Ludhiana. 2. Following grounds have been raised by the Assessee in this appeal: 1. That very initiation of proceedings u/s. 147 is bad in law. 2. That the assessment order is against law and facts on the file in as much as the Ld. Assessing Officer was not justified to compute the total income at ₹ 50,45,365 as against returned income of ₹ 1,89,365/-. 3. That the Ld. Assessing Officer gravely erred in making an addition of ₹ 48,56,000/- because deposits in the bank account. 3. From the aforesaid grounds it would be clear that the only grievance of the assessee relates to the sustenance of addition of ₹ 48,56,000/- made by the A.O. on account of the amount deposited in the saving bank account of the assessee maintained with Punjab National Bank, Bahadur Ke Road, Ludhiana Bran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... flected. Therefore, you are requested to explain the cash credits of ₹ 48,60,000/- and credit entries through cheque/RTGS/bank transfer amounting to ₹ 91,00,000/-. In view of the above mentioned circumstances, I have been left with no opportunity but to complete the assessment to the best of my judgment under section 144 of the Income Tax Act, 1961. 4.2. The A.O. mentioned that the Counsel for the Assessee attended on 26/10/2016 and filed the final reply to the query raised vide notice under section 144 of the Act on 18/10/2016 and submitted that three cheques received by the assessee were from M/s. Vikas Trades in lieu of agricultural produce. It was also stated that in the earlier years the assessee was not maintaining bank account and the amount was deposited collectively in the previous year which had been earned in the earlier years, the submissions of the assessee were as under: In response to the Notice u/s. 148 of the I.T. Act, 1961 it is submitted that the assessee is a farmer and having only agricultural income. The assessee is a senior citizen and does not have any other income other than agricultural income. The assessee was not maintaining any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. In the absence of any reply it is presumed that counsel of the assessee has nothing more to say on this issue. 4.11 As per bank statement of the assessee it is noticed that the assessee had deposited ₹ 48,56,000/- in his saving bank account No. 4766000100024592 during the A.Y. 2012-13 of Punjab National Bank Bahadur Ke Road Ludhiana. During the course of assessment proceedings credits entries of all cash credits remained unexplained. Therefore, unexplained cash deposits are required to be added in the total income of the assessee.. As discussed above Hon'ble Supreme Court in the case of CIT vs. Durga Das More, (1971) 82 ITR 540 (SC) has categorically held that revenue is entitled to look into surrounding circumstances to find out the reality of recitals made in the documents. In the case of Sumati Dayal vs. CIT 214 ITR 801 (SC), the Hon'ble Supreme Court has also held that the matter has to be considered in light of the human probabilities. It is a story that does not accord with human probabilities . The case of the assessee satisfies the above parameter and conditions laid down by the Hon'ble Apex Court. 4.12 As per provisions of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e. ₹ 48,56,000/- which was earned in earlier years. It was stated that the assessee because of his ill health, could have not provided the details of another bank account maintained with State Bank of Patiala at Hosiery Branch, Bahadur Ke Road, Ludhiana (now SBI) before the A.O. during the course of assessment proceedings, from the said bank account the assessee had withdrawn cash amounting to ₹ 30,00,000/- ₹ 38,00,000/- on 25th 26th of October, 2010 respectively. It was further stated that the assessee also received cash from commission agent against sale of agricultural produce and adduced a xerox copy of account with M/s. Kahlon Co. for the year ending 31/03/2010 which revealed earning of ₹ 3,45,212/-. It was submitted that the aforesaid amount of cash after meeting the household expenditure and cash expenditure relating to agricultural income were deposited in the bank account maintained with PNB in the denomination of ₹ 56,000/- on 24/04/2011 and ₹ 48,00,000/- on 12/08/2011. 5.1. The Ld. CIT(A) after considering the submissions of the assessee observed that the assessee's contention of being an agriculturist and an illiterate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposited after a lapse of almost a year. According to the Ld. CIT(A) the assessee may be an agriculturist and may not have any other source of income than agriculture but the amount of cash deposited in his bank account or the use of his bank account by any other person needed to be explained by the assessee and in the absence of any cogent and relevant explanation, the operation of law with regard to the treatment of unexplained credit in the bank account as deemed income has to be effected with its full rigours. 5.5. The Ld. CIT(A) also observed that there had been substantial deposits both in cash and cheque and the agriculture income had been found to be deposited in the assessee's bank account by means of account payee cheques, in these circumstances, there was an onus on the assessee to explain the sources of deposits in cash which had not been cogently done. He therefore sustained the addition of ₹ 48,56,000/- made by the A.O. 6. Now the assessee is in appeal. 7. Ld. Counsel for the assessee reiterated the submissions made before the authorities below and further submitted that the assessee deposited the amount of ₹ 56,000/- on 22/04/2011 out of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
