TaxTMI 
TaxTMI 
2017 (12) TMI 1260
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....me. 3. The Appellate Commissioner ought not to have confirmed the order of the AO on amount of addition of Rs. 28,05,420/- and ought not to have dismissed the appeal of the assessee". Ground Nos. 1 & 4 are general in nature. 2. Briefly stated, assessee is an individual deriving income from salary, house property and other sources. He filed his return of income on 14-10-2010 declaring total income of Rs. 3,89,000/-. The Assessing Officer (AO) completed the assessment u/s. 143(3) of the Income Tax Act [Act] by making the addition of Rs. 28,05,420/- towards unexplained investment, being peak deposits in bank account and determined the total income of Rs. 31,94,420/-. 3. Before the Ld.CIT(A), it was explained as under: "....
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....sue, it is in place to refer to the dates and amounts of cash credits appearing in the bank account of the appellant. The appellant opened an SB account with M/s. Axis Bank on 09.03.2009 and the major cash credits made during the year are as under: 14.09.2009 - Rs. 13,00,000 15.09.2009 - Rs. 15,00,000 19.10.2009 - Rs. 9,90,000 5.3 Now coming to the explanation of the appellant that he is in receipt of Rs. 5,90,000/- being sale consideration of agricultural lands, it is seen that the agricultural lands were sold on 13.03.2008 (Rs.3,76,000) and on 30.04.2008 (Rs.2,13,000). As rightly pointed out by the Assessing Officer, the gap of receipt of the above sale consideration and deposit of cash in bank ac....
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....4.06.2009 from two relatives and Rs. 3 lakhs on 05.06.2009 from his aunt. However, the credits in the bank account are made in the months of September and October, 2009 and the deposits made also are not matching with the amounts claimed as gifts. Apart from the gap brought above, what all the appellant furnished in support of sources in the hands of relatives is the pattadar passbooks evidencing agricultural land holdings. The extent of land holdings in the name of above three persons is Ac.10.10, Ac.6.00 and Ac.7.51 and no evidences in support of earning agricultural income from the above lands were furnished. 5.6 As could be seen from the above discussion, the appellant made some vague claims for explaining the sources for the c....
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....hese investments were questioned by the Assessing Officer, the appellant brought in the theory of past savings, agricultural income, sale of agricultural lands and gifts without any cogent evidences. 5.8 As the appellant has not produced any plausible evidence for the cash credits made in his bank account and went on making vague claims of cash balance and without filling in the gaps between the date of purported receipts and cash deposits in the bank account, I find no infirmity with the action of the Assessing Officer in arriving at the peak credit of Rs. 28,05,420/- and accordingly, the addition so made is confirmed". 5. It was the contention of Ld. Counsel that assessee is not a Government employee but private employee givin....
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....e from the returns of earlier years. Thus, the source of agricultural income cannot be denied, just because assessee had not deposited the same in bank account. Considering the small town from which assessee hails and the fact that he is from agricultural family, the objections of AO and CIT(A) that these moneys are not deposited in bank and there was a gap can be rejected. Thus, the explanation for agricultural income and sale proceeds being a source, as explained before the CIT(A), can be accepted. AO is directed accordingly. 7.1. Then the issue of gifts of Rs. 11 Lakhs. Assessee explained that an amount of Rs. 11 lakhs was gifts from three persons. They could not be produced before AO for verification. Ld.CIT(A) could have got them ex....