TaxTMI 
TaxTMI 
2019 (1) TMI 218
X X X X Extracts X X X X
X X X X Extracts X X X X
....cted for scrutiny assessment. The assessment u/s 143(3) of the Income Tax Act, 1961 (hereinafter called as 'the Act') was framed vide order dated 16.1.2016.The A.O. while framing the assessment made addition in respect of capital gain of Rs. 75,35,438/-, income from other sources of Rs. 23,90,602/- and unexplained credit in bank account of Rs. 17,51,000/-. Hence, the A.O. after giving deduction under Chapter 16A assessed income at Rs. 97,40,840/-. The assessing officer also computed agricultural income at Rs. 3,00,000/- against the agricultural income claimed at Rs. 4,50,200/-. 3. Aggrieved by this action of the A.O., the assessee preferred an appeal before Ld. CIT(A), who after considering the submissions partly allowed the appeal. While partly allowing the appeal, the Ld. CIT(A) confirmed disallowance of transfer expenses of Rs. 2,00,000/- and the additions made in respect of the deposits made in the bank account of Rs. 17,51,000/-. Rest of the additions were deleted by the Ld. CIT(A) for the assessee and the revenue had challenged the assessment order. Appeal of the revenue in ITA No.305/Ind/2017 dated 19.9.2018 was dismissed for low tax effect. The present appeal of the asse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....roduced PB 122- 123 4) Repaid on 7.1.2013 AO pg.19 5) Cash was deposited before issue of cheque to assessee. He was agriculturist and his income was in cash only. He would explain his source. Huge cash deposits before issue of cheque to assessee. He would explain his source. CIT Vs. Jai Kumar Bakliwal 366 ITR 217 (Raj.) 5 Shri Prahlad Patidar 4,50,000 1) Received by cheque. Bank pass book at pg.17 para (c) 2) Identity proof - Election ID. 3) Confirmation 4) Source of Income - Agriculture, Land revenue records produced. 5) Repaid on 19.1.2013 6) Cash was deposited before issue of cheque to assessee. He was agriculturist and his income was in cash only. He would explain his source. Huge cash deposits before issue of cheque to assessee. He would explain his source. CIT Vs. Jai Kumar Bakliwal 366 ITR 217 (Raj.) 4. Ld. D.R. opposed the submissions and supported the orders of the authorities below. 5. We have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. Ld. CIT(A) confirmed this addition. Ld. CIT(A) decided this issue by observing as under: 8.1 As seen from the ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of agricultural income however the agricultural land holding is not commensurate with cash deposit in the accounts which are again of Rs. 49000/- or below that amount just prior to the loan given to the appellant. Shri Vishwas has no separate land in his name. Total land in the family in name of grand mother uncle etc. is only 16 Bighas and the details of the bank acounts in name of uncle and his family have not been given. In view of the above it is held that the loan from the above two creditors are also not satisfactorily explained. 5. Shri Prahlad Patidar: As in the case of the above 4 depositors in this case also there are cash deposits in the bank account of the depositor of Rs. 49000/- or below, just before giving the loan to the appellant. The deposits are not commensurate with the land holding which is a meagre 3 Bighas only and the depositor has not produced any other details of his family and agricultural income. It is otherwise also too much of a coincidence that all the depositors inspite of small land holdings had agricultural income of almost equivalent amount and deposited the same in their bank accounts in a sum of Rs. 49000/- or below, at the sa....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... We are afraid, such a narrow and restricted interpretation of the provisions, contained in Section 68 was advanced by learned counsel for the appellant/assessee, cannot be accepted. If the liability shown in the said account which, is found to be bogus and in the absence of any plausible and reasonable explanation offered by the assessee, then, certainly, the amount can be added towards the income of assessee and brought to tax in the hands of the assessee. The reliance placed on the decisions, in our considered opinion, do not apply to the facts and circumstances of the case and are distinguishable." 8.4 In the instant case also as pointed out above the appellant has submitted the copies of balance sheet ledger accounts bank book cash book etc at the time of assessment and the receipt is duly reflected in these accounts and hence A.O. was justified in invoking the provisions of section 68 of the Act. The ITAT Bangalore in the case of P.V. Ajay Narayan vs. Income Tax Officer (1997) 57 TTJ 159 (Bang) has held as under: "It is further contended by the learned counsel for the assessee that the addition cannot be made under section 68 because the assess....