TaxTMI 
TaxTMI 
2020 (1) TMI 221
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....ed U/s 147/143(3) of the IT Act, 1961 which is bad in law. 2. Under the facts and circumstances of the case, the ld. CIT(A), Kota has erred on fact and in law in confirming the addition of Rs. 18,00,000/- on account of treating the cash deposits out of advance received against sale of agriculture land as income of the assessee from undisclosed sources. 3. Under the facts and circumstances of the case, the ld. CIT(A), Kota has erred on fact and in law in confirming the addition of agriculture income of Rs. 1,30,800/- as non agriculture and treating the same as income from other sources. 4. The assessee craves right to add, alter or amend any of the grounds of appeal." 2. Rival contentions have been heard and record perused. Facts in b....
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.... found that after recording sufficient reasons, the A.O. arrived at a conclusion that the income to the extent of cash deposit in the bank has escaped assessment, therefore, I do not find any infirmity in the reopening of the assessment. 5. With regard to merit of addition, it was contended by the ld AR that by producing parties from whom the assessee has received cash and by filing relevant papers, the assessee has discharged his primary onus, thus the addition was not called for. 6. On the other hand, the ld DR has relied on the orders of the lower authorities. 7. With regard to merit of addition, I found that during the course of reassessment proceedings assessee was asked to explain the source of cash deposit. In reply vide letter da....
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....e. 8. I also found from the record that the two persons appeared and confirmed the transaction. Thy also explained their sources/resources to prove their capacity. The manner of transaction in cash or bank depends on the ease of transacting as per the mutual consensus. As long as the law allows the transaction, the ld. AO should not question the manner of transaction. Transacting in cash cannot invalidate the transaction as far as the other persons are confirming the transaction. 9. The allegation of the A.O. was that the agreement was oral. As per my considered view even the oral agreements are well recognized in the Indian Contract Act. Further, the manner of transaction also depends on personal comforts, proven integrity of the partie....
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.... under: Sr. No. A.Y. Agriculture Income Other Income Total Income 1 2015-16 - 211959 211959 2 2014-15 - 206551 206551 3 2013-14 - 197480 197480 4 2012-13 - 205335 205335 5 2011-12 - 156310 156310 6 2010-11 - 170438 170438 7. 2009-10 130800 149096 279896 8. 2008-09 122650 98350 221000 The assessee has also explained the reason as to why he sold the agricultural land. He explained that during the FY 2007-08 the assessee has taken housing loan from Indiabulls Housing Finance Ltd and EMI of Rs. 28,432/- was payable per month. However the assessee was not able to pay the instalment of housing loan and several cheques returned unpaid mainly from the period 01.09.2008 to 10.....