AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (8) TMI 1080
X X X X Extracts X X X X
X X X X Extracts X X X X
....cts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming disallowance on account of agriculture expense at the ad hoc rate of 30% to the extent of Rs.4,21,537/- as unexplained cash in hand. 3. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming addition of Rs.28,888/- towards short term capital gain. 4. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming addition Rs.32,357/- towards Speculative Gain in share market transaction. 5. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Appeals) has erred in confirming addition of Rs.19,800/- pertaining to Stamp duty paid in cash. 6. On the fact and circumstances of the case as well as law on the subject, the learned Commissioner of Income-Tax (Appeal) has erred in confirming the addition of Rs.3,21,982/- towards the LIC premium paid in cash. 7. It is therefore prayed that the above addition/disallow....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dition to the tune of Rs.59,29,739/-. 6. Aggrieved by the order of the Assessing Officer, the assessee carried the matter in appeal before the ld. CIT(A), who has restricted the addition from Rs.59,29,739/- to Rs.4,21,537/- . Aggrieved, the assessee is in further appeal before us. 7. We have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials brought on record. Learned Counsel submitted that once agriculture income was proved on the basis of record of title and possession and agriculture land and evidence of agriculture operations earning income there form, the same has not to be proved every year separately therefore, ld Counsel for the assessee prayed the Bench that addition restricted by ld CIT(A) to Rs.4,21,537/- is part of agricultural income and therefore such addition should be deleted. On the other hand, the Ld. DR for the Revenue has primarily reiterated the stand taken by the Assessing Officer, which we have already noted in our earlier para and is not being repeate....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ills/expenses. The assessee's cash flow statements pertaining to agriculture receipts & expenses were considered by ld CIT(A). In such a situation, approximate agriculture income was computed by applying the decision of ITAT Ahmedabad Bench in the case of Dhirubhai Narola. Thus, 30% of the net agriculture income of Rs.14,05,124/-, that is, Rs.4,21,537/- disallowable towards unverifiable bills/expenses and only balance amount of Rs.9,83,587/- can be considered as available cash from agriculture income. Thus, to the extent of Rs.4,21,537/-, there will be shortage of cash for deposit in the bank accounts. Hence, out of total cash deposit of Rs.21,12,000/-, Rs.4,21,537/- is treated as unexplained cash in the hands of assessee. As regards the other credit entries, ld CIT(A) find that the assessee has explained the credit entries properly and the AO has not brought out any concrete evidences to reject the same. Most of the credit entries are found to be pertaining to opening balance in the said bank accounts, FD closure proceeds and other sources receipts. Thus, the addition of Rs.59,29,739/- pertaining to cash deposits and other credits was restricted to Rs.4,21,537/- by ld CIT(A). ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ank account and balance amount was from the bank account of wife and parents. That is, part of the payment was made by his parents. We note that assessing officer did not disprove this fact. However, ld DR for the Revenue supported the findings of assessing officer. We do not agree with ld DR for the Revenue, as the assessee explained the source of payment stating that part payment was made from his wife account and from his parents. Considering these facts, we delete the addition pertaining to Rs.19,800/- and Rs.3,21,982/-. Thus ground No. 5 and 6 raised by the assessee are allowed. 11. In the result, assessee's appeal is partly allowed. 12. Now, coming to ITA No. 558/SRT/2019 for AY.2010-11, wherein grounds of appeal raised by the assessee are as follows: "1. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income-Tax (Appeals) has erred in upholding the reassessment proceedings u/s 148 of the Act. 2. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income-Tax (Appeals) has erred in confirming disallowance on account of agriculture expenses at the ad hoc rate of 30% to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted in our earlier para and is not being repeated for the sake of brevity. 19. We have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials brought on record. We note that assessee has stated that agriculture income of Rs.22,26,421/- in A.Y. 2006-07 and net agriculture income of Rs.4,40,733/- for A.Y. 2011-12 were accepted by the AO. It was also submitted by the assessee that during scrutiny of agriculture income for AY 2006-07, the inspector of ward/circle had visited the agriculture land and even statement of Mr. Alikhan Pathan (Mango Contractor) was recorded by the AO. Thus, ld Counsel contended that there was well accepted fact of agriculture income in the case of assessee for AY 2006-07. Furthermore, the assessee's husband's claim of agriculture income of Rs. 21,96,314/- in A.Y. 2006-07 was accepted by the AO, agriculture income of Rs.23,15,500/- for A.Y. 2007-08 was accepted at the level of ITAT, agriculture income of Rs.13,98,666/- for A.Y. 2008-09 was accepted b....