9911796707
TMI Blog2023 (12) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... er referred to as 'the Act') relating to the Assessment Year (A.Y) 2017-18. 2. The solitary issue before us is that the Ld. CIT(A) erred in upholding addition of Rs. 14,32,782/- being 50 percent of agricultural income treating as unexplained cash credit u/s. 68 of the Income Tax Act in the absence of books of accounts. 3. The brief facts of the case is that the assessee is an individual 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same on "Ganot" at villages namely Tighra, Bhutsad, Italva and Pardi. The 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 asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onour to kindly delete the addition of Rs. 14,32,872/-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 unexplaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f books of accounts. 3) That 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : "-Income from 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
