TaxTMI 
TaxTMI 
TaxTMI 
2021 (7) TMI 282
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....Rs. 369850/- The ld. Assessing Officer erred in law as well as on the facts of the present case in making addition as unexplained investment and ld. CIT(A) erred in sustaining the same." 2. During the course of hearing, the ld. AR submitted that the assessee is a farmer earning income from agriculture as well as dairy business for last several years and there is no change in the source of income during the year under consideration. For the year under consideration, the assessee has filed return of income declaring income of Rs. 193,850/- on 30.08.2013. A search was conducted in the case of Kedia and Yadav Group and in consequent to the same, assessee's premises was also searched on 19.11.2016. Accordingly, notice u/s 153A was issued on....
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....ncestral house. Thus apparently such payment can be treated as justified. The purchase of car is duly supported with the cash flow statement which is enclosed in paper book at PB 16. 1.1.2 Assessee regularly filing its return of income since AY 2010- 11: We may submit that as submitted above the assessee is regularly filing its return since AY 2010-11 agricultural and dairy income as source of income. Copies of return of income are duly placed in the paper book from PB 13-25 alongwith the financial statements prepared on the basis of available information. Therefore, there is clear source of income available with the assessee and is duly disclosed to department also. 1.1.3 Financial Statement on estimated basis and Cash Flow Statement....
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.... be rejected. The silence of the department is only to deny the legitimate relief to the assessee without any substantive basis. Accordingly, the addition made by the ld. AO was bad in law. 1.1.6 Reason for non-withdrawal from bank account: The ld. AO stated that there is no cash withdrawal except AY 2012-13 and therefore, cash payment of Rs. 369850/- is not justified. In this regard, we may submit that the assessee lives in a village and the source of income of the assessee i.e. agricultural income and dairy income are such that only cash is received by the assessee and even there are no cash or cheque deposit. Most of the time the assessee receives cash on account of its income and the same is kept with him to meet drawings and the ba....
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....CIT(A) has rejected the appeal of the assessee summarily without considering the submissions of the assessee and even without pointing out that how the assessee could not prove the source of cash payment. Therefore, it is clear that even the Id. CIT(A) has no valid reasons to reject appeal of the assessee and hence, chosen to reject the appeal summarily without any discussion. As such the order of ld. CIT(A) cannot sustain on this issue and ground of the assessee has to be allowed. In the above facts and circumstances of the case, the Id. AO was not justified in rejecting the submission of the assessee merely for the reason of non-withdrawal of cash whereas the entire receipts shown by the assessee has duly been taxed by the ld. AO. The I....
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....4 3,500 0 2,02,744 7.4 From the above working, it is clear that the assessee has cash in hand at Rs. 1,92,391/- at the beginning of year i.e. A.Y. 2013- 14 and he made payment of Rs. 3,96,850/- in cash. No cash withdrawals from bank except for F.Y. 2011-12 relevant to A.Y. 2012-13 are seen. The withdrawals from capital account were for the purpose for daily or his personal expenses. Since, cash balance for payment of Rs. 3,69,850/- is no where justified. Therefore, the investment in purchasing of car is treated as out of his undisclosed income and the same is hereby added in his total income for this year." 5. It was further submitted that ld CIT(A) has duly considered the submissions of the assessee and the findings of the AO ha....