TaxTMI 
TaxTMI 
2023 (2) TMI 194
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....igarh has erred in law and facts in upholding the contention of the learned A O has not reduced the agricultural income as disclosed in the return of income filed pursuant to notice u/s. 148 and accepted by the learned AO in the assessment order of Rs. 5,56,000/-." 2. Briefly the facts of the case are that the case of the assessee was reopened u/s. 147 by issuing notice u/s. 148 dated 24.03.2017 for escapement of income amounting to Rs. 13,90,000/-. In response, the assessee filed his return of income declaring total income of Rs. 1,77,790/- and agriculture income of Rs. 5,56,000/-. During the course of assessment proceedings, the assessee was issued a Show Cause Notice and required to explain the source of cash deposits of Rs. 13,90,000/- in his bank account maintained with HDFC Bank, Kurali. In response, the assessee submitted that the deposits were made out of the sale proceeds of wheat, bajra and popular trees. The assessee was further required to furnish documentary evidence regarding the sale of wheat, bajra and popular trees as well as total land holding which the assessee failed to furnish and in view of the same, the source of cash deposit was held by AO as unexplained ....
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....the poplar tree are invariably put to commercial use) do not assist the case of the assessee. It is also relevant to quote, from the assessment order, the explanation given for the cash deposit:- "During the course of assessment proceedings, the assessee was required to explain the sources of cash deposits of Rs. 13,90,000/-. It was stated the deposits were made out of the sale proceeds of wheat, bajra and poplar trees as per details given below:- 10.04.2009 Wheal and poplar 3,00,000/- 28.08.2009 Bajra and poplar 2,00,000/- 01.09.2009 Wheat and poplar 6,50,000/- 28.11.2009 Wheat and poplar 2,40,000/- 13,90,000/- The details are not in congruity with the seasonal sales pattern at the end of the harvest seasons. From the details it is seen that wheat is seen to have been sold beyond normal harvest times. Also there is mention of sale of rice in the J form a product that was not taken as a source before the assessing officer. (iii) In light of the above the explanation given on account of sale of poplar trees needs to be negated. The J form in respect of sale of cereals, even though at variance with ....
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....n, on the contrary the assessee furnished the affidavit of Shri Ziledar Ali and Shri Mohan Walia copies of which are placed at page 6 to 8 of the assessee's compilation. In the said affidavits both the persons accepted that they purchased Popular trees from the assessee. Shri Ziledar Ali stated in his affidavit that he purchased the Popular trees for Rs. 10.40 lakhs, similarly Shri Mohan Walia in his affidavit stated that he purchased the Popular trees for a sum of Rs. 10.25 Lakhs. Shri Mohan Walia also accepted in his statement before the A.O. that he purchased Popular trees from the assessee for approximately Rs. 10,00,000/-. The assessee also furnished the copy of Girdawari before the A.O. and mentioned the Khasra number, on which the Popular trees were planted. In the present case, the A.O. while observing that trees were already cut in the earlier years had not brought any evidence on record to rebut this contention of the assessee that the Popular trees were already planted on the periphery of the field. Therefore, by considering the totality of the facts, particularly the acceptance given by the purchasers of the Popular trees in their respective affidavits, I am of the ....
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....also sold popular trees which were grown on the periphery of his land, and has earned an amount of Rs. 9 lacs which has also been deposited in his bank account has not been accepted. In support of his contention, the assessee has submitted joint affidavit/confirmation from Shri Harchand Khan and Gurinder Singh which has also not been accepted. We have gone through the submissions filed by the assessee before the ld. CIT(A) wherein the assessee has submitted the joint affidavit/confirmation from Shri Harchand Khan and Gurinder wherein they have categorically stated that they have purchased popular trees from the assessee for further sale and have made payment in cash totaling to Rs. 9,00,000/- besides photocopies of popular trees grown and sold by the assessee, cash flow statement of his agricultural activities have also been submitted. Nothing has been stated as to what further explanation or documentation is required from the assessee especially given the fact that he is not mandated under law to maintain any regular books of accounts. In my view, the assessee has discharged the initial onus cast on him explaining the nature and source of cash deposit being proceeds of sale of pop....