TMI Blog2023 (12) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... our considered opinion, is not correct in law. The assessee has shown gross total income of Rs. 340 only for the Assessment Year and agricultural income of Rs. 28,65,563/-. Co-ordinate Benches of the Tribunal have held that any sum found credited in bank passbook could not be treated as an unexplained cash credit under section 68 of the Act, since the bank account of the assessee is not considered as part and parcel of the books of accounts. Thus the addition made by the Assessing Officer was deleted. The Bombay High Court in the case of CIT v Bhaichand N. Gandhi [ 1982 (2) TMI 28 - BOMBAY HIGH COURT] has held that the pass book supplied by the bank to the assessee cannot be regarded as a book maintained by the assessee or under his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidual and agriculturist by profession filed his Return of Income on 26-07-2017 declaring the total income as Rs. 340/- and agricultural income of Rs. 28,65,563/-. The assessee case was selected for scrutiny assessment since the assessee shown large agricultural income and the assessee was requested to justify the same with necessary evidences. 3.1 The assessee replied that he was holding agricultural land measuring 19.12 acres wherein crops were grown and produced Form No. 7/12 copy and other Revenue records. The assessee also shown agricultural income for the earlier previous two Assessment Years and the Gross total income which is much less than the basic exempt income of Rs. 2,50,000/- as follows: A.Y. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer has merely doubted the agricultural income earned by cultivating land of other farmers which was worked out by him at Rs. 7,65,618/- and he made the impugned addition by treating such agricultural income as income earned from other sources. He submitted that the AO failed to appreciate the agreements entered into in 2005 by the assessee with Padmaben R. Ranka (mother) and Anjaliben D. Shah (mother-in-law) according to which the assessee cultivated their agricultural land since those persons were not able to cultivate land on account of their old age. ITAT Ahmedabad conclusion The AO had disbelieved the claim on the basis that the assessee did not place on record other evidences, namely, bills and vou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being agricultural income treated as unexplained cash credit u/s 68 of the Income Tax Act, 1961. 5. The above submissions of the assessee were considered by the Ld. NFAC and rejected the same by dismissing the assessee appeal observing as follows: ..6.7 The addition was based upon the statements of appellant recorded by the AO. Since, the appellant did not have land holding and as he has shown to have sown groundnuts, 50% of the agricultural income was considered to be genuine for the land holding shown groundnut crop sown. The remaining 50% i.e., 14,32,782/- was treated as unaccounted income shown in the guise of exempt agricultural income the same has been added as unexplained expenses u/s 68 of the IT Act. 6.8 (a) Addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the order passed by the Ld. CIT u/s.250 of the I.T. Act, 1961 was arbitrary, bad in law and unjust. 4) That the assessee craves leave to urge such other ground or grounds before or at the time of hearing of appeal. 7. Heard rival submissions extensively and perused the materials available on record and the Paper Book, case laws filed by the assessee. It is not in dispute that the assessee is holding agricultural land by himself 19.12 acres and also doing agricultural activities for Shri Dineshbhai Premjibhai Sojitra for 25 bighas of land and filed Affidavit by the Shri Dineshbhai Premjibhai Sojitra. The assessee also placed on record, the Income Tax Returns filed by the assessee for the Assessment Years 2015-16 2016-17 wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom undisclosed sources-Addition under section 68Credit in bank passbook---Bank statement is not considered as books of account, therefore, any sum found credited in bank passbook could not be treated as an unexplained cash credit under section 68.-Certain credit entries were reflecting as cash deposit in bank account of assessee. AO treated the same unexplained cash credit and made addition under section 68.Held: Bank statement is not considered as books of accounts, therefore, any sum found credited in bank passbook could not be treated as an unexplained cash credit under section 68. 7.3. The Bombay High Court in the case of CIT v Bhaichand N. Gandhi (1983) 141 ITR 67 (Bom) has held that the pass book supplied by the bank to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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