TMI Blog2022 (7) TMI 378X X X X Extracts X X X X X X X X Extracts X X X X ..... that the cash-withdrawals and cash-deposits have been made on various dates during the year and the pattern is such that re-deposits out of cash-withdrawals is possible. Thirdly, we also find that the assessee is having agriculture as sole source of income and there is no other source of income brought on record by Ld. AO. Since agricultural income is fully exempt, the assessee does not have any taxable income and therefore the addition u/s. cannot be made - Appeal of assessee allowed. - ITA No. 9/Ind/2022 - - - Dated:- 28-6-2022 - MS. SUCHITRA KAMBLE , JUDICIAL MEMBER AND SHRI B. M. BIYANI , ACCOUNTANT MEMBER For the Appellant : Milind Wadhwani , AR For the Respondents : Harshit Bari , Sr. DR ORDER Per B. M. Biyani , AM 1. This appeal filed by the assessee is directed against the order dated 25.11.2021 of learned Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre [ Ld. CIT(A) ], which in turn arises out of the order of assessment dated 17.12.2019 passed by the learned ITO-1, Harda [ Ld. AO ] u/s. 144 of the Income-tax Act, 1961 [ the Act ] for the Assessment-Year 2017-18. 2. The assessee has raised following grounds: 1. On the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of Ld. AO. 5. Before us, the Ld. AR opened his arguments with a humble submission that the assessee is a pure agriculturist and neither well-versed with the laws of income-tax nor with procedures and systems. Ld. AR also submitted that the assessee did not have benefit of any counsel or consultant and all reply-letters submitted to Ld. AO during assessment-proceeding, as placed in the Paper-Book at Page No. 12 to 15, 51, 66 etc., are in Hindi and signed by the assessee. Ld. AR further submitted that the scrutiny started with cash-deposits of Rs. 15,06,678/- made in the demonetization-period and in order to justify those deposits, the assessee submitted documents of agricultural income. But the scrutiny ended with the overall deposits of Rs. 33,91,841/- made during the whole previous year in bank-accounts. Ld. AR submitted that for the deposits of Rs. 33,91,841/- made during the whole year, the assessee had not only the agricultural income but also the cash-withdrawals made from those very bank accounts which too were re-deposited in those bank accounts. 6. Regarding agricultural income, Ld. AR submitted that the assessee and his family are having a total 99.195 acres of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of their crop to the established dealers and part of their crop directly to consumers. This fact is very much accepted by Hon'ble ITAT, Chennai in Smt. Annakkalanjiam Mathivanan ITA No. 2451/Chny/2018 order dated 22.01.2019: 5. The Assessing Officer as well as the CIT(Appeals) have to appreciate the fact that the agricultural products in this country are traded in unorganized sector. The workforce in the agricultural sector is unorganized. When the agricultural products are traded in unorganized sector in the country, expecting the assessee to produce bills for sale of agricultural produce is something which cannot be produced by the assessee. Moreover, when the assessee engages labourers in carrying out agricultural operation and incur expenditure, producing vouchers is something uncalled for. What is to be seen is that whether the assessee has cultivated the land as claimed. When the assessee claims that the land was cultivated with certain crops and when the Assessing Officer has taken up the assessment for examination after three or four years from the relevant financial year, no material evidence will be available on the land to show that the assessee has cultivate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neither well-versed with the laws of income-tax nor with procedures and systems; he does not have benefit of any counsel or consultant and all reply-letters submitted to Ld. AO during assessment-proceeding are in Hindi and submitted by the assessee. Hence the assessee made an overall general submission that all deposits were made out of agricultural income and this explanation is bona fide too because over the years the assessee has been doing only agricultural activity and nothing else. 8. Lastly the Ld. AR stressed that the assessee is a full time agriculturist as is evident from several certificates and awards received and news items published in the media. Ld. AR submitted that the assessee does not have any income except agricultural income. Ld. AR submitted that when there is no source of income except agricultural income, it is but natural that the assessee has made cash-deposits in the bank account out of agricultural income only. According to Ld. AR, agricultural income is non-taxable and hence there cannot be any addition on account of taxable income u/s. 69A. Ld. AR relied upon the decision of Indore Bench in ITO Vs. Smt. Shahnaj Bano, ITA No. 443/Ind/04 order dated 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthorities in appreciation of agricultural activities done by him. We also observe that the assessee has submitted Bills/Vouchers to the tune of Rs. 24,49,148/- and also submitted he had made sale of crops directly to ultimate consumers for which the evidences could not be maintained. We find much weightage in the submission of assessee. This submission of assessee finds direct support from Smt. Annakkalanjiam Mathivanan ITA No. 2451/Chny/2018 (supra). Therefore, the assessee's submission deserves credence and acceptance. Secondly, we also observe that the assessee has made a total cash-withdrawals of Rs. 33,86,980/- from his bank accounts during the year from time to time and therefore moneys were available with the assessee for making cash-deposits. On perusal of the bank-statements placed in the paper-book, we observe that the cash-withdrawals and cash-deposits have been made on various dates during the year and the pattern is such that re-deposits out of cash-withdrawals is possible. Thirdly, we also find that the assessee is having agriculture as sole source of income and there is no other source of income brought on record by Ld. AO. Since agricultural income is fully exe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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