TMI Blog2021 (5) TMI 959X X X X Extracts X X X X X X X X Extracts X X X X ..... mulative/past savings of the preceding years. Thus we direct to delete the addition sustained by the ld. CIT(A) qua this issue. - Decided in favour of assessee. - ITA No. 1251/JP/2019 - - - Dated:- 24-5-2021 - Shri Sandeep Gosain, JM And Shri Vikram Singh Yadav, AM For the Assessee : Shri Mahendra Gargieya Shri Dewang Gargieya (Advs) For the Revenue : Smt. Monisha Choudhary (JCIT) ORDER PER: SANDEEP GOSAIN, J.M. This is the appeal filed by the assessee against the order of the ld. CIT(A)-I, Jaipur dated 05/08/2019 for the A.Y. 2014-15. The grounds taken by the assessee are as under: 1. The impugned addition made in the order U/s 143(3) dated 30/11/2016 is bad in law and on facts of the case, for want of jurisdiction and various other reasons and hence the same kindly be deleted. 2. The ld. CIT(A) erred in law as well as on the facts of the case in confirming the addition of ₹ 18,45,060/- made by the AO as unexplained income u/s 69A of the Act on account of the cash deposit in bank a/c. The addition so made and confirmed, being contrary to the provisions of law and facts on the record and hence, the same kindly be deleted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere raised before the ld. CIT(A) and also relied upon the written submissions filed before the Bench and the same is reproduced below: Source of cash deposits fully established beyond all doubts: 1. A bare reading of the ld. CIT(A) order (Pr-iv Pg 14-15) makes it evidently clear that he proceeded mere on suspicion than to make a fair estimation of undisclosed income (if any) based on the relevant material on record. His findings are highly perverse as and being demonstrated. 1.1 His first contention that AO has already given credit of agriculture income of ₹ 25,17,195/-, meaning thereby no further relief is required, is highly unjustified and perverse. The AO did not do any charity to the assessee while accepting huge agriculture income as also rental income which was established on record and accepted by the AO himself. Merely on this basis the assessee could not be denied, the benefit of availability of cash. 1.2 Availability of cash fully Established: On the contrary, this huge income declared this year by itself, implies that in the past also the assessee was in receipt of substantial amount of agriculture and rental income as well and the assessee re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the chart reveal that the assessee has been making of substantial deposits in the past ranging between ₹ 11 to 13 Lakhs, meaning thereby, it is not that he is keeping the entire amount of agriculture and other income in cash only. The entire matter must be understood and appreciated with the assessee`s point of view. A person who is having an object / target to make some investment / outgoings in the future, shall be accumulating whole a part of his earnings and such a practice is not against human probabilities, more particularly, looking to his past cash deposits. It is not that the entire 43.62 Lakhs were kept in cash but it is only ₹ 17 Lakhs the balance (because upto ₹ 25.17 Lakhs was sourced from the current year income itself). Hence, keeping cash savings upto ₹ 17 Lakhs in the light of the huge agriculture income and the above submissions was nothing abnormal. Again to repeat, the authorities below have not even whispered a single word what to talk of establishing the utilization of such cash savings of ₹ 17 Lakhs to have been utilized elsewhere then utilizing the same in the subjected cash deposits. 3.1 Bank Account: As regards the non ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here appears no reason why he should have completely ignored the agriculture income earned and the availability thereof in the preceding years. Surprisingly he has not whispered a single word on this aspect. Therefore, based on availability of cash, a cash flow statement was prepared (PB-28) which shows sufficient availability of cash in hand in this year of ₹ 50,48,966/- out of which, the subjected amount of cash deposits of ₹ 43,62,255/- were made. In view of these facts, there was no scope for the AO to have made any addition on account of the cash deposit in the bank. 2. Utilization of Income earned not established by the AO: It is very pertinent to note that the AO, on one hand has not only admitted that there was agricultural income in the current year as also in the past but even assessed the same and also admitted that the assessee was in receipt of funds therefrom and also from the rental income in the current year as also in the past. However surprisingly, he ignored and rather avoided giving credit of availability of cash therefrom towards the subjected bank deposits. It is not the case of the AO that the assesse earned the agriculture income lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 43,62,255/-. In reply thereof, the assessee categorically stated that the same was sourced out of the agriculture and other income of the current year as also the accumulation/past savings of the preceding year. However, the A.O. after considering the current s year income being ₹ 25,17,195/- restricted the addition to ₹ 18,45,060/- (₹ 43,62,255 - 25,17,195). From the record, we also noticed that the assessee was continuously holding a huge chunk of land for last many years and the assessee had also filed the chart of agriculture income disclosing the same in the return of income for last few years as under: A.Y. Agriculture Land holding (Area) Gross Agriculture Income Less: Expenses Net Agriculture Income ITR filed assessed 2011-12 128.44 Bigha 41,77,522/- 2,32,369/- 29,45,153/- Yes 2012-13 128.44 Bigha 7,92,508/- 2,34,582/- 5,57,926/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on was ₹ 22,91,771/-, therefore, under such circumstances, the explanation put forth by the assessee that the cash deposited by the assessee was from the agricultural and other income as well as from the accumulative past savings of the preceding years appears to be reasonable. Moreover, the department had also accepted the generation and availability of cash because of agricultural income for the year under consideration, therefore, there was no reason for ignoring the availability of cash with the assessee due to accumulative/past savings of the preceding years. On this proposition, we draw strength from the decision of Hon ble Madras High Court in the case of CIT v/s P.V. Bhoopathy (2006) 205 CTR 495 (Mad) wherein it was held as under: Appeal (High Court)-Substantial question of law-Income from undisclosed sources-AO did not accept various sources of income explained by the assessee and made additions under ss. 68 and 69 in respect of difference between the investments and the sources accepted by him-Tribunal accepted the explanation of the assessee vis-a-vis availability of funds with the assessee from the sale proceeds of jewellery belonging to his mother-in-law, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P H) has held as under: Income from undisclosed sources-Unexplained investment-Amount disclosed by HUF under Voluntary Disclosure Scheme-Thereafter kept lying in assessee's house with his wife till her death-ITO questioning its source after the same had subsequently been deposited with a bank in the names of assessee's then major daughters-In the absence of any evidence to the effect that the said sum was utilized by the assessee in any other manner, the Department was not justified in unreasonably rejecting a good explanation and adding the amount as income from undisclosed sources-Further, the addition, if at all possible, could have been made only in the daughters' hands-There was no provision in 1922 Act analogous to s. 69 of 1961 Act Considering the above facts and circumstances, judicial pronouncements referred above as well as discussions made above, we direct to delete the addition sustained by the ld. CIT(A) qua this issue. 9. Ground No. 3 raised by the assessee relates to charging of interest U/s 234A, 234B, 234C and 234D of the Act. Since, we delete the addition made and sustained on account of unexplained income, therefore, this ground of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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