TaxTMI 
TaxTMI 
2022 (10) TMI 595
X X X X Extracts X X X X
X X X X Extracts X X X X
....The brief facts of the case are that the assessee, a partner in two partnership firms, namely, Sharma Associates & Vanshika Constructions, filed her return of income for the year on 22/03/2018, declaring a total income of Rs. 28,85,990, which was selected for scrutiny through CASS for the following reasons: (i) Claim of Large Exempt Income; (ii) Large agricultural income shown in ITR; and (iii) Large cash deposit during demonetization. The Assessing Officer (AO) accepted the returned income vide assessment order dated 26/12/2019, observing that the assessee had share income (from partnership firms) at Rs. 158.04 lacs, and agriculture income at Rs. 17.84 lacs, which were verified and found acceptable. His findings are as under: 'The as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he tune of Rs. 17,83,553/-. However, the assessee has furnished copies of "Bhu Adhikar & Rin Pustika" and some sale bills, but the cash deposit in bank accounts, i.e., total cash being agricultural receipts, are not commensurate with the bank statement and cash book furnished by the assessee. The AO has also not made any third party enquiries in respect agricultural produce or sale of agricultural produce. Further, in respect of cash deposits of Rs. 16, 39, 320/- in bank accounts, assesse furnished cash book and copy of bank statement but source of cash was not verified by the then AO. The opening cash balance of the assessee is also not examined during the course of assessment proceedings.' Aggrieved, the assessee is in appeal before us.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e, we observe there is no mention of the land holding, crops cultivated and sold; extent of income, i.e., in relation to sale, etc. in the assessment order. Further, how does it compare with the agricultural income declared by the assessee in the past, or by others in the region with similar holdings (or on yield basis)? This is particularly so as the very basis for verification of the return is 'large' agricultural income, implying it to be inconsistent with the past. This is precisely what the ld. Pr. CIT refers to when he speaks of absence of any third party enquiry in respect of agricultural produce or it's sale. Again, we observe that while the AO speaks of Khasra Khatauni (i.e., the land records), the ld. Pr. CIT, on an examination of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e bank! The assessee, despite several sources of income, is hard put to explain the cash deposits, ascribing the same to the said cash withdrawals, clearly indicating that but for the said withdrawals, she does not have the requisite cash-in-hand. Now, nobody would withdraw cash just to keep it with himself, so that the onus, even otherwise on an assessee to prove the claims per his return of income, is heavy on the assessee, i.e., to state as to why and for what purpose/s cash was withdrawn, and why did she continue to hold it, i.e., assuming so, for over a year. This also clarifies, being a pure question of fact, that income does not necessarily imply cash, which could be held in the form of different assets. As such, stating, as the AO d....