Tribunal overturns decision, directs removal of disputed amount. Assessee granted benefit of doubt.

Sunilkumar Narsinhbhai Patel Versus Income Tax Officer, Ward-1

Sunilkumar Narsinhbhai Patel Versus Income Tax Officer, Ward-1 - TMI Issues:
Addition of unexplained cash deposited in the bank account.

Analysis:
The appeal was filed against the order of the Commissioner of Income Tax(Appeals) concerning the addition of a specific amount in the bank account as unexplained cash deposits. The controversy revolved around the addition of this amount in the assessment order. The assessee, a farmer, sold agricultural produce to two purchasers, and the dispute arose regarding the cash deposits related to one of the purchasers, Dariyalal Aloo Bhandar.

During the assessment, the Assessing Officer added the cash deposit amount as unexplained income. The CIT(A) remanded the matter for verification, and while one party's transactions were accepted as explained, the other party, Dariyalal Aloo Bhandar, did not confirm the transactions. The CIT(A) observed that the individual share of land was insufficient to produce the quantity of potatoes sold to Dariyalal Aloo Bhandar.

The assessee contended that the sales were made in a specific period due to the perishability of the product, and all decisions were made by the assessee despite the land being in the name of family members. The closure of Dariyalal Aloo Bhandar was supported by affidavits and witness statements. The Revenue argued that the explanation offered did not pass the test of human probabilities.

After considering the arguments, the Tribunal found merit in the assessee's plea. The Tribunal noted the sufficient land available for cultivation and the supporting evidence provided. Given the circumstances and the lack of confirmation from Dariyalal Aloo Bhandar, the benefit of doubt was given to the assessee. Consequently, the Tribunal directed the deletion of the addition in question.

In conclusion, the Tribunal allowed the appeal, setting aside the CIT(A)'s order and directing the Assessing Officer to delete the addition of the disputed amount.