TaxTMI 
TaxTMI 
2023 (12) TMI 639
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.... grounds of the appeal at the time of hearing of the appeal. 3. During the course of hearing, the ld AR submitted that the assessee is an ex-serviceman and for the relevant assessment year i.e. A.Y. 2012-13 has also worked as a contractor with HP Forest Corporation. Proceedings u/s 147 of the Act were initiated against the assessee and notice u/s 148 of the Act was issued on 29/03/2017. In compliance to the said notice, the assessee filed income tax return on 02/11/2017 thereby declaring pension income amounting to Rs. 1,08,993/-, business income u/s 44AD amounting to Rs. 1,80,684/- and agriculture income amounting to Rs. 4.50,000/-. 3.1 During the course of assessment proceedings, the assessee was directed to explain the cash deposits of Rs. 10 lacs in his bank account. The assessee has filed a reply to the same and has explained the source of cash deposits which is placed on the record. It was submitted that the Ld. A.O. has not appreciated the explanation given by the assessee has made an addition of Rs. 7,20,000/- from undisclosed sources of income. 3.2 The assessee preferred an appeal against the said assessment order dated 19/12/2017 before the ld CIT(A) and also fil....
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....y 1.5 Bighas of land with him Here it is submitted that Asstt for the said year completed on 19/12/2017 and matter pertain to AY 2011-12. Being a Agriculture income , assesee remain in impression that being exempted income, Bills (Purcha's) not required to be kept for long as such destroyed the same within 2-3 years. For your kind perusal, Assessee has also availed cash credit limit alongwith his mother of Rs. 7,10,000/- each dated 10/01/2011 ( Relevant revenue papers enclosed) against Agriculture land holding of Approx 38 Bighas (19 Bigha each in name of Roop Singh and Smt Durgi Devi,Mother). Against the cash credit limit of Rs. 7,10,000/- availed by Asseee, Rs 6,00,000/- tfd to his saving account dated 18/01/2011. This amount was used by him for agricultural operation on his land by frequent withdrawals between 18/01/2011 to 20/02/2011. As mentioned above in addition to agricultural income, Assessee is also working as petty contractor for HP Forest corporation and reed few payment i.e Rs. 128740/- dt 30/04/2011, Rs. 66,293/- dated 03/05/2011, Rs. 1,26,228/ dated 01/06/2011, Rs. 102763 dated 23/06/2011 and Rs. 84,107/- dated 25/07/2011. Tota....
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....no instance of unexplained cash deposit and addition made thereto may kindly be deleted. 3.6 Therefore in view of the submissions made above, it was submitted that the present appeal may kindly be allowed and the impugned orders dated 19/12/2017 and 07/11/2022 may be quashed and set aside in the interest of justice. 4. The Ld. DR has relied on the order of the Ld. AO and the ld CIT(A) and our reference was drawn to the findings of the AO which are contained in para 4 to 4.2 of the assessment order and the same reads as under: "4. The assessee has made cash deposits of Rs. 10 lakh in his SBI account on the following dates: 02.08.2011 Rs. 4,00,000/- 09.12.2011 Rs. 1,00,000/- 20.12.2011 Rs. 5,000/- 14.01.2012 Rs. 3,20,000/- 24.01.2012 R s . 2 5,000/- 16.02.2012 Rs. 50,000/- 07.03.2012 Rs. 1,00,000/- 4.1. The assessee was asked to explain the source of above cash deposits in his bank account. The assessee has sought to explain cash deposit of Rs. 4,00,000/- made on 02.08.2011 out of agricultural income of Rs. 4,50,000/- declared in the ITR. However, no proof of sale of agricultural produce has been furnished by the as....
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....nsidered as explained out of regular withdrawals made by the assessee preceding the date of cash deposits. In view of above discussion/ analysis, source of cash deposits of Rs. 7,20,000/- has not been explained by the assessee with documentary evidence and therefore an addition of Rs. 7,20,000/- is made to the total income of die assessee from undisclosed sources of income. The assessee has concealed the particulars of his income. Therefore, penalty proceedings u/s 271(l)(c) of the Act are being initiated separately." 5. Heard the rival contentions and purused the material available on record. It is not in dispute that the assessee along with his mother owns agriculture land measuring 38 bighas where apple orchards are grown and cultivated by the assessee. The land holdings records have been submitted before the lower authorities. Further, agriculture produce records have now been submitted which shows production of apples. The assessee has also availed cash credit limit from the bank based on joint land holding and the amount has been transferred in his bank account. It is the claim of the assessee that all expenditure and receipts from agriculture operations are undertaken thr....