Tribunal partially allows appeal, removes added agricultural income, sustains undisclosed sources income, grants benefit for cash deposits

The Tribunal partly allowed the appeal, directing the deletion of the addition related to agricultural income from the sale of poplar trees due to valid evidence submitted but not considered by the Assessing Officer. However, the Tribunal sustained Rs. 75,000/- as income from undisclosed sources, granting the benefit of Rs. 2.5 lakhs cash deposits in accordance with Instruction No.3/2017 for the assessee but not extending it to the assessee's wife, who was not a taxpayer.

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Issues Involved:
1. Condonation of delay in filing the appeal.
2. Addition of Rs. 8,20,000/- as income from undisclosed sources.
3. Agricultural income from the sale of poplar trees.
4. Cash deposits from past savings.

Condonation of Delay:
The assessee filed the appeal with a delay of 368 days, citing illness and subsequent transfer as reasons. The Tribunal condoned the delay, considering the illness/hospitalization and transfer as reasonable causes beyond the assessee's control.

Addition of Rs. 8,20,000/- as Income from Undisclosed Sources:
The Assessing Officer (AO) added Rs. 8,20,000/- as income from undisclosed sources after disallowing the assessee's explanations regarding the cash deposits during the demonetization period. The NFAC upheld this addition, noting the lack of substantial evidence provided by the assessee.

Agricultural Income from Sale of Poplar Trees:
The assessee claimed Rs. 4,25,000/- as agricultural income from the sale of poplar trees, supported by invoices and Kisan Bahi. The AO and NFAC rejected this claim, stating no evidence was provided. However, the Tribunal found that the invoices were indeed submitted and not considered by the AO. The Tribunal directed the deletion of the addition related to agricultural income, as the AO had no valid reason to ignore the submitted invoices.

Cash Deposits from Past Savings:
The assessee claimed Rs. 3,95,000/- as cash deposits from past savings. The Tribunal referred to Instruction No.3/2017, which allows up to Rs. 2.5 lakhs cash deposits without further verification for individuals without business income. The Tribunal granted the benefit of Rs. 2.5 lakhs to the assessee but did not extend this benefit to the assessee's wife, as she was not a taxpayer. Consequently, Rs. 75,000/- was sustained as income from undisclosed sources.

Final Decision:
The appeal was partly allowed, with the Tribunal directing the deletion of the addition related to agricultural income and sustaining Rs. 75,000/- as income from undisclosed sources.

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