9911796707
TMI Blog2023 (8) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year 2015-16 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter the 'Act') vide order dated 28.12.2017. 2. At the outset it is noticed that this appeal is barred by limitation by 35 days. The impugned appellate order of CIT(A) was received by assessee on 13.08.2022 and appeal was to be filed within 60 days i.e., 16.10.2022 but actually the appeal was filed only on 21.11.2022 thereby there was a delay of 35 days. The assessee has filed affidavit for condonation of delay stating that the delay had occurred because mistake committed by the office of Chartered Accountant that the order was sent to the office of the counsel by the chartered accountant only in the middle of November,2022 and thereby the appeal was filed only on 21.11.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n his savings bank account maintained with Canara Bank, Pasurr during the financial year 2014- 15 relevant to this assessment year 2015-16. The AO also noted that the assessee has deposited a sum of Rs. 12,81,000/- during demonetization period. During the course of assessment proceedings, the assessee was asked to furnish details of source of cash deposits vide letter dated 01.04.2017. The assessee furnished copy of cash book for the financial year 2014-15 and stated that the assessee had received advance to the tune of Rs. 24,00,000/- from three persons i.e., Rs. 8,00,000/- from each of Shri P. Karthikeyan, Shri P. Sakthivel and Shri M. Muthukar. The assessee explained that these three persons has entered into agreement on 11.09.2014 with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f of agricultural land holdings, pass book, within four days. P. Sakthivel : He is having only agricultural income. No PAN/Not: filed return. No land in his name. His grand father and mother said to be owner of 5 acres of land and deriving income 4 to 5 lakhs per annum. Not maintaining any bank accounts. He used to keep money at home and used to give hand loans to friends and relatives, He had advanced to Sri V S Shanmughasundaram, the assessee, Rs 8 lakhs out of his past savings which was repaid by his relatives who had taken hand loan from him. No evidences produced for land holdings, nor convincing evidences to prove that he enjoys the entire agricultural income said to have derived from his grand father's and mother's land. Fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 30,000/p.a., LIC policy of Rs.18,000/p.a, maintenance and fuel expenses of alto car, and house hold expenses (For five members of his family) totaling to Rs. 42,000/ p.a. and car insurance of Rs. 2,100/p.a. etc. He is said to be having an account with credit society account. Karumnandampalayam and also having an SB account in wife's name with minimum balance. He stated that out of proceeds of papaya amounting to Rs. 6 lakh, savings Rs. 1 lakh and loan amounting to Rs. 1 lakh, he had advanced, for purchase of land, to Sri VS Shanmugasundaran and neither received any interest nor preferred to go against him legally during the last three years. He also planned to do agricultural activities after the proposed purchase of land. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o have advance a sum of Rs. 8,00,000/- each of them on the basis of agreement to sale for purchase of agricultural land of the assessee. The assessee also argued that the sale as per agreement i.e., sale of agricultural land did not take place due to certain pending issues and since, money has not been returned by the assessee to these three persons till date and no interest was paid to these parties, the AO simply on suspicion has added the amount advanced by these three persons as unexplained cash credit u/s. 68 of the Act. Admittedly, all these three persons are farmers and agriculturists as Shri P. Karthikeyan is owner of 15 acres of agricultural land earning income per annum around Rs. 2 to 3 lakhs. Similarly, Shri P. Sakthivel is also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricultural land of 15 acres and stated to have agricultural income, admitted an oath before AO on 19.12.2017 that his average income per annum is around 2 to 3 lakhs. This way, he has saved six lakhs and after withdrawing from society as well as cash kept at home, he entered into purchase of agricultural land of the assessee and advanced a sum of Rs. 8 lakhs. The agricultural income was not denied and he has explained source as he is the owner of agricultural land of 15 acres which was not controverted by AO in his assessment order or CIT(A) or now by the Senior DR before me, except creating some suspicion. I accept this credit as explained for the reason that the assessee has sources of earning i.e., agricultural income from 15 acres of la ..... X X X X Extracts X X X X X X X X Extracts X X X X
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