TMI Blog1978 (2) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... r the two assessment under consideration are the years ended 31st March, 71 and 31st March, 71, respectively. 3. There are deposits in cash in the capital account of the assessee in both the years. The ITO did not believe the explanation of the assessee with regard to the source of the cash deposits. The AAC partly believed the said explanation. The assessee has, in the two appeals now under consideration, disputed the decision of the A.A.C to the extent to which he has sustained the additions. The relevant amounts are as below: Asst. yr. Cash deposits in capital a/c Addition made by the ITO Addition sustained by the AAC . Rs. Rs. Rs. 1971-72 40,932 40,932 20,927 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... several years and had considerable agricultural income over the years, that there was some accretion by way of interest earned from lending monies mainly to agriculturists, that the major part of such income was saved because the family of the assessee was looked after at Nasik by his father who was also in-charge of the "Dharamashala" and its kitchen and that having regard to the available evidence and probabilities of the case, it may be accepted that the assessee had total savings by way of each accumulations of Rs. 89,795 which is the source of the cash deposits in the capital account. The A.A.C has accepted that the assessee has some agricultural land and also some income from agriculture but he has not accepted that the amount of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s at Nasik and was looking after the agricultural lands etc., and there is substance in his stand that since material to show that there were transactions of money lending, the cash was in circulation and not readily available for depositing it in any bank account. (Un-discharged pro-notes were produced before us to show that there was money lending.) 8. Similarly, certain alleged gaps in the evidence produced before the departmental authorities by the assessee are not of any great significance. For example, it is true that the assessee does not have accounts for the agricultural income and that even some of the old diaries in which there are relevant entries which were produced are for only certain periods and do not cover the entire pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... those points). The most important area of dispute is as regards the income from land at Talegaon bearing survey No. 124 with an area of 4 acres. The A.A.C has estimated the annual income for the period of 15 years from 1950 to 1964 at Rs. 1,000 per annum. we have seen documentary evidence to show that the guava crop on the land had been farmed out in one of the seasons for a little over Rs. 3,000 and in another season for Rs. 4,000. The old diary produced by the assessee contains an entry corresponding to one of these transactions. The diaries contain entries showing other receipts for other seasons. Suffice it to state that having regard to this material, the estimate of the income made by the assessee at Rs. 3,000 is acceptable to us. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the background of the assessee, we are not impressed by the stand of the Department that the expenditure of the assessee must have been larger than stated by the assessee. 11. Thus having regard to material on record, and on an appreciation of the above, we hold that the assessee has explained in a satisfactory manner, the source of the cash deposits of Rs. 62,652 in the two years under consideration. Therefore, we direct that the corresponding additions of Rs. 20,927 and Rs. 21,710 in the two respective years are deleted. 12. As stated earlier, the other addition of Rs. 3,000 made in the asst. yr. 1971-72 is upheld. 13. The appeal for 1971-72 is partly allowed and the appeal for 1972-73 is allowed. - - TaxTMI - TMITax - Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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