TMI Blog2023 (9) TMI 674X X X X Extracts X X X X X X X X Extracts X X X X ..... irming the addition on ad-hoc basis. The ITAT Ahmedabad in the case of Samir Kishor Parekh [ 2022 (6) TMI 1111 - ITAT AHMEDABAD] held that that addition made on estimated basis, without rejecting books of accounts of the assessee, is unsustainable in law. Further, it is well-settled law that no addition could be made on estimated basis without rejecting books of account of assessee as held by various Courts in the case of Asian Grantio India Ltd. [ 2019 (10) TMI 1193 - ITAT AHMEDABAD] , Royal Marwar Tobacco Product (P.) Ltd.[ 2007 (12) TMI 321 - ITAT AHMEDABAD] , Anil Kumar Company [ 2016 (3) TMI 184 - KARNATAKA HIGH COURT] , Ercon Composites [ 2013 (12) TMI 902 - ITAT JODHPUR] to name a few. Accordingly, the addition as sustaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis of AIR information that appellant had deposited cash in savings account of Rs. 11,50,000/-. 1.3 That the order passed u/s 147/143(3) of the Income Tax Act, 1961 on 03.12.2018 upheld by the Ld. CIT(A) on 30.11.2021, was perverse to the law and to the facts of the case, because no notice if any was ever issued u/s 143(2) prior to complete the assessment proceedings, therefore, the assessment framed becomes barred by limitation. 1.4 That the order appealed against is contrary to the facts, law and principles of natural justice and in any view of the matter deserves to be quashed as AO overlooked the fact that cash withdrawal and deposit is regular feature and pattern in previous assessment years as well as in subsequent assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee filed return of income declaring total income of Rs. 1,07,440/- and agricultural income of Rs. 4,17,133/- on 23.10.2018. During the course of assessment, the Assessing Officer asked the assessee to explain the source of above cash deposits. The assessee contended that the aforesaid cash was deposited out of earlier years and current year s agricultural income. However, the Assessing Officer observed that the assessee had not furnished details in respect of agricultural income, family members and their activity, borrowings for agricultural activities, cash flow statement, ownership of bank account etc. Accordingly, the Assessing Officer made an addition of Rs. 8,70,000/- to the returned income of the assessee, after giving credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer and no adverse inference was drawn. e) Once the Assessing Officer accepted the Agricultural Income for A.Y. under consideration, then there is no reason for the Assessing Officer to not to accept the Agricultural Income in earlier AY's and not to give the benefit of Past savings out of Agricultural Income. It is a fact that Agricultural land holding of the Appellant remained the same i.e. 18.66 acres over a period of last many FY's. f) In support of Agricultural Income of earlier years the Appellant filed copies of sales bills of groundnut and Tuver (Pigeon Pea) pertaining to A.Y. 2009-10 and A.Y. 2008-09 to prove that Appellant had similar Agricultural Income in earlier years also. g) In the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a result, appeal is partly allowed. 6. The assessee is in appeal before us against the aforesaid order passed by Ld. CIT(Appeals) sustaining the addition of Rs. 5 lakhs. On going through the facts of the case, we observe that Ld. CIT(Appeals) while partly allowing the appeal of the assessee, observed that the assessee had declared agricultural income of Rs. 4,17, 130/- which was accepted by the Assessing Officer and no adverse inference was drawn. Further, Ld. CIT(Appeals) observed that once the Assessing Officer accepted the agricultural income for the assessment year under consideration, then there is no reason for the Assessing Officer to not to accept the agricultural income for earlier assessment years and not to give benefit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooks of accounts of the assessee, is unsustainable in law. Further, it is well-settled law that no addition could be made on estimated basis without rejecting books of account of assessee as held by various Courts in the case of Asian Grantio India Ltd. [2020] 113 taxmann.com 445 (Ahmedabad - Trib.), Shree Asutosh Transport Co. [1997] 90 Taxman 331 (Ahmedabad - ITAT), Royal Marwar Tobacco Product (P.) Ltd. [2009] 29 SOT 53 (Ahmedabad) (URO), Anil Kumar Company [2016] 67 taxmann.com 278 (Karnataka), Ercon Composites [2014] 49 taxmann.com 489 (Jodhpur - Trib.), etc. to name a few. Accordingly, the addition to the extent of Rs. 5 lakhs sustained by Ld. CIT(Appeals) is directed to be deleted, looking into the instant facts which has been don ..... X X X X Extracts X X X X X X X X Extracts X X X X
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