TaxTMI 
TaxTMI 
2023 (9) TMI 674
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....1-12. 2. The assessee has taken the following grounds of appeals:- "1.1 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 confirming the action of assessing officer in confirming addition of Rs. 5,00,000/- (since CIT(A) has confirmed on estimate basis) on account of unexplained cash deposit in savings bank account although all the documents were placed on record and none of the records were rejected or found concocted. 1.2 On the facts and in the circumstances of the case as well as law on the subject, learned Assessing Officer has erred in re-opening assessment u/s 147 by issuing notice u/s 148 of the ITA Act, 1961 merely on basis of AIR information ....
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....delay in filing of the present appeal. Without prejudice to the above, we also observe that the appeal of the assessee is falling within the extended time given for Corona Period (till 28 March 2022), and accordingly, looking into the facts of the instant case, we are hereby condoning the delay of 18 days in filing of the present appeal. 4. The brief facts of the case are that the assessee agriculturalist and holds 18.66 acres of land. For Assessment Year 2011-12, the Assessing Officer observed that the assessee had deposited cash aggregating to Rs. 11,50,000/- in his savings bank account maintained with the State Bank of India. In view of the above, the case was reopened under Section 147 of the Act. The assessee filed return of income de....
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....me of earlier AY/AYs' or past savings has been allowed to the appellant. In support of Agricultural Income, the Appellant had filed proof of agricultural land holdings, Agricultural produce sale bills, vouchers for Agricultural expenses, PGVCL Bills etc. c) While making addition of Rs. 8,70,000/-, the Assessing Officer has also taken into consideration the cash deposit of Rs. 2,20,000/- in joint savings bank account held by the Appellant with his father namely Devrajbhai Manjibhai Aghera who expired on 19.03.2012 and copy of death certificate was filed by Appellant. d) During the A.Y. the Appellant had declared net a Agricultural Income of Rs. 4,17,130/- which was accepted by the Assessing Officer and no adverse inference was drawn. e....
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....9;s agricultural income of Appellant as Rs. 4,17,133/-and on other hand has given no credit for past savings out of Agricultural Income from earlier AY's. i) In view of the above mentioned facts it will be fair and reasonable to estimate that the Appellant had Rs. 3,70,000/- available from the past savings out of Agricultural Income of earlier AY's which was deposited in cash in his bank a/c. As a result, relief of Rs. 3,70,000/- is allowed to the Appellant and addition of Rs. 5,00,000/- made by the Assessing Officer is upheld. Ground of Appeal No. 1 is partly allowed. 7.3 Grounds of Appeal Nos. 2 and 3 are routine and general in nature. 8. As a result, appeal is partly allowed." 6. The assessee is in appeal before us against....
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....ultural income and being in possession of substantial holdings has not disputed by Ld. CIT(Appeals). Accordingly, given the facts of the instant case, we are of the considered view that Ld. CIT(Appeals) has erred in facts and in law in sustaining the addition of Rs. 5 lakhs on ad-hoc basis, when it has not been disputed that the assessee is having agricultural income for past many years and further, no rationale/basis has been given for confirming the addition of Rs. 5 lakhs on ad-hoc basis. The ITAT Ahmedabad in the case of Samir Kishor Parekh Vs ACIT in ITA Nos. 265 and 266/Ahd/2020 held that that addition made on estimated basis, without rejecting books of accounts of the assessee, is unsustainable in law. Further, it is well-settled law....