TaxTMI 
TaxTMI 
2019 (5) TMI 1269
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....hat on the facts and circumstances of the case, both the lower authorities has erred not appreciating the savings of a family which during all life time has earned income and made provisions for their future to purchase the Ag. land. 4. That on the facts and circumstances of the case, the AO made the addition in the income of the appellant on estimated basis and not based on facts and the CIT(A) also confirmed the same without considering the history of the poor family. The appellant or any family member have not business income. 5. That the appellant hereby appeals to delete the addition made by the AO and confirmed by the CIT(A). 6. That the appellant craves to add, forego, amend and to substitute any further ground/s of appeals at the time of hearing of and in any case before the disposal of this appeal. 2. The brief facts of the case are that on the receipt of information from the office of DDIT (Inv.)., Panipat, AO observed that the assessee deposited cash of Rs. 62,70,000/- on 27.04.2012 in the Saving Bank Account No.2032101002715 maintained by her with Canara Bank, Babarpur Mandi, G.T. Road, Panipat. The assessee did not make any compliance of t....
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.... explained by the assessee as under:- i. Rs. 4,00,000/- contributed by her husband Sh. Jai Pal. ii. Rs. 2,64,000/- contributed by her son Sh. Pawan. iii. Rs. 8,50,000/- from her past savings of dairy work and sales of live stock etc. 2.1 During assessment proceedings it was stated by the counsel of the assessee that a plot was sold by assessee's husband for a consideration of Rs. 4,00,000/- and the said sale proceeds of the plot was given by him to his wife Smt. Santor Devi, the assessee. The counsel of the assessee was asked to produce the purchaser of plot for verification. The purchaser of plot, Sh. Rajender S/0 Sh. Ram Prashad r/o Village Barauli, Distt. Panipat was produced for verification on 20.09.2016. In his statement Sh. Rajender admitted the purchase of plot measuring 175 sq. yds. from Sh. Jai Pal, husband of the assessee for a consideration of Rs. 4,00,000/- on 20.09.2016. It was further stated by Sh. Rajender that the plot was situated within the 'Lai Dora Limit' of Village Barauli, therefore, the registration deed of the plot was not executed. Regarding the source of the amount invested in the purchase of plot it was stated by Sh. Rajdene....
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....in the presence of Sh. J.B. Sharma, Adv. and her statement was duly witnessed by the counsel. She was asked to explain the source of the remaining amount of Rs. 2,00,000/- as her husband Sh. Jai Pal has failed to furnish the source of the said amount. She simply stated that Rs. 4,00,000/- given to her by her husband and he can explain the source of the said amount. She was confronted with the statement of Sh. Jai Pal and she was again told that her husband has failed in explaining the source of the remaining amount of Rs. 2,00,000/-, therefore, as to why the said amount may not be added to your taxable income. It was stated by her that her husband could give answer and she had no knowledge about the same. If any sum is found credited in the bank account of the assessee the onus lies on her to prove the source of the same. The onus is on the assessee to discharge the onus that the cash creditor is a man of means. The creditworthiness of Sh. Jaipal could not be proved. The assessee has failed in proving the source of the cash of Rs. 2,00,000/- deposited in the bank account, therefore, the same is added to her total income by treating the same as her income from undisclosed sources....
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.... allowed to him and an addition of Rs. 1,37,000/- (1,87,000 - 50,000) is made to the taxable income of the assessee by treating the same as her income from undisclosed sources as the assessee has failed in proving the creditworthiness of Sh. Pawan. It was submitted by the assessee that she deposited cash of Rs. 8,50,000/- out of her past savings of dairy work and sales of live stock etc. Statement of the assessee was recorded on 7.10.2016 and she was asked to explain the source of Rs. 8,50,000/-. It was stated by her that they were rearing 4 to 5 buffaloes and were selling milk for Rs. 4000/- to Rs. 5,000/- p.m. She was asked how much live stock was sold and also state the period when the same was sold. It was stated that she did not remember when the live stock was sold and the number of live stock sold. The assessee was asked where she kept Rs. 8,50,000/-. It was stated that the cash amount of Rs. 8,50,000/- was kept at home. The assessee has been maintaining bank account with Canara Bank, Babarpur Mandi since 1991. The assessee's family were almost remained in the fields, school/colleges, therefore, assessee's version that the huge cash amount of Rs. 8,50,000/- was lying at home....
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....24/Del/2015 in which the ITAT, Delhi has favored the assessee observing the facts of the case. Some of the highlights/abstracts from the above decision are as under:- a) Mere deposits into bank can't be treated as income for notice u/s 147/148 of I T Act, 1961 b) All receipts are not income and all incomes are not taxable. c) There can be no. of sources of cash deposit by the assessee in the bank a/c. Unless and until it is brought out in reasons to believe as to how the cash deposits represents income from undisclosed sources, same cannot give justification to reopen the case u/s 147/148 of I.T. Act, 1961. 3.1 It was further submitted that in the case of assessee, the notice u/s 147/148 of I.T. Act, 1961 issued is also bad in the eyes of law. The orders of assessment made/confirmed by both the lower authorities is invalid and be quashed. 3.2 It was further submitted that the total addition Rs. 937000/- on diff. counts as under, which are not based on facts but only on presumption basis be deleted. a) Addition of Rs. 200000/- out of Rs. 400000/- is baseless as the head of the family Sh. Jai Pal has admitted in his statement that the amo....
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....y upholding the order of the Ld. CIT(A) on this issue and reject the ground raised by the assessee. As regards addition of Rs. 6 lacs on estimation basis is concerned, it is noted that the assessee deposited cash of Rs. 8,50,000/- out of her past savings of dairy work and sales of live stock etc. Statement of the assessee was recorded on 7.10.2016 and she was asked to explain the source of Rs. 8,50,000/-. It was stated by her that they were rearing 4 to 5 buffaloes and were selling milk for Rs. 4000/: to Rs. 5,000/- p.m. She was asked how much live stock was sold and also state the period when the same was sold. It was further stated that she did not remember when the live stock was sold and the number of live stock sold. The assessee was asked where she kept Rs. 8,50,000/-. It was stated that the cash amount of Rs. 8,50,000/- was kept at home. The assessee has been maintaining bank account with Canara Bank, Babarpur Mandi since 1991. The assessee's family were almost remained in the fields, school/colleges, therefore, assessee's version that the huge cash amount of Rs. 8,50,000/- was lying at home does not appear to be correct. If any person has so much huge amount of cash he w....