TMI Blog2023 (11) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer has accepted partial explanation of the assessee and allowed relief to the extent of Rs. 2,50,000/- towards cash deposits during demonetization period. Just because, the assessee did not file his return of income for earlier assessment years, the available source in the form of agricultural income cannot be disputed . The filing of return in earlier years is hardly depending upon the taxable income of the assessee for those assessment years. In case the assessee does not have any taxable income, he need not to file income tax returns for those assessment years, even if he had earned agricultural income. Therefore, rejection of explanation furnished by the assessee, by the AO on the basis of non-filing of income tax return for ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 16.07.2021 and pertains to assessment year 2017-18. 2. The assessee has raised the following grounds of appeal: 1. The order dated 16.07.2021 of the Learned CIT(A)- Salem in ITA No. /11210/2019-20 for the Assessment year AY 2017-2018 is contrary to facts, opposed to law and untenable. 2. The Ld AO failed to follow the Standard Operating procedure as laid out by the CBDT in the instruction no 03/2017 2.1 The Ld AO failed to follow the spirit of the instruction no 4/2017 and failed to follow the instructions of CBDT on operation Clean money Assessments 3. The Learned CIT-A erred in making the addition on account of cash deposited in the ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoked For these and other grounds that may be permitted to be adduced before or during the course of hearing, the Appellant prays that the appeal be allowed and the order of Learned Commissioner of Income Tax (Appeals) be deleted in so far as upholding the action of learned Assessing officer. 3. The brief facts are that, the appellant is a Chartered Accountant, deriving income from profession, income from other source and income from agricultural activities. The assessee filed his return of income for the assessment year 2017-18, declaring total income of Rs. 2,38,240/-. The case was selected for scrutiny and during the course of assessment proceedings, the Assessing Officer noticed that the assessee has deposited a sum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected arguments of the assessee and sustained additions made towards cash deposits u/s. 69 of the Act. Aggrieved by the ld. CIT(A) order, the assessee is in appeal before us. 4. The Ld. Counsel for the assessee, referring to various documents including details of land holding and certificate of VAO submitted that, the Assessing Officer erred in disputing the fact that the assessee is carrying out agricultural operations. Further, although the assessee did not file his return of income for earlier assessment years, but fact of the matter is that the Assessing Officer cannot disregard land held by the assessee and agricultural operations carried out during the earlier period. Further, just because the assessee did not file his return of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erations. The Assessing Officer, partially accepted the explanation of the assessee and has allowed deduction of Rs. 2,50,000/-, towards cash deposits in specified bank notes during demonetization period. Therefore, from the above, it is very clear that the Assessing Officer never disputed extent of land held by the assessee and deriving income from agricultural operations. In fact, there is no dispute with regard to the fact that the assessee is having huge extent of land and is carrying out various agricultural operations including nursery etc. The assessee had also filed relevant cash vouchers for receipt of cash from various parties for sale of agricultural products. Therefore, when the assessee is having sufficient land holding and als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered view that the only option left with us is to settle the dispute between the assessee and the Assessing Officer, by estimating source for cash deposits during demonetization period. We, therefore considering the extent of land held by the assessee and other evidences filed during the course of assessment proceedings, we are of the considered view that, credit for agricultural income to the extent of Rs. 6,54,500/- needs to be given to the assessee. Thus, we direct the Assessing Officer to allow credit for source to the extent of Rs. 6,54,500/- out of agricultural income earned by the assessee for the impugned assessment year and balance amount of Rs. 5,00,000/- to be treated as unexplained money taxable u/s. 69 of the Act. In other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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