TaxTMI 
TaxTMI 
2022 (12) TMI 1505
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.... because provisions of this section cannot be invoked in case where concerned money is already recorded in the books of account. The assessee prays that the addition of Rs. 20,00,000/- made u/s 69A be deleted. 2). On the facts and in the circumstances of the case CIT(A) erred in confirming addition of Rs. 20,00,000/- made by the Assessing Officer only on presumption and surmises by treating cash deposited during demonetization period to the extent of Rs. 20,00,000/- (Rs. 10,00,000/- each in bank accounts with "Allahabad Bank" and "Central Bank of India"), duly recorded in the books of account maintained by the assessee, as unexplained money u/s.69A and levied tax thereon as per provisions of section 115BBE(1) of the Act @ 60% without considering written submissions, books of account and other documents furnished before him to explain sources of cash deposited during demonetization period and by ignoring the fact that assessee is assessed to tax since last so many years and sources of cash deposited in bank accounts during demonetization period were duly explainable with reference to complete set of books of account for the F.Y. 2014/15 to F.Y. 2016/17 produced before him for veri....
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....ore, the claim of the assessee as regards availability of cash in hand out of agriculture income which belonged to HUF was merely an afterthought on the basis of which he had tried to explain the source of the cash deposits in his bank accounts. Accordingly, the A.O not finding favour with the aforesaid claim of the assessee held the entire amount of Rs. 20 lac as the unexplained money of the assessee u/s.69A of the Act. 4. Aggrieved, the assessee carried the matter in appeal before the CIT(Appeals). During the course of the proceedings before the appellate authority, it was the claim of the assessee that cash deposits in the bank accounts were made out of his books of account. In support of his aforesaid contention the assessee had produced his books of accounts for the year under consideration i.e. A.Y. 2017-18, as well as those for the immediately two preceding years a/w. copies of capital account and Balance Sheet for the said years. It was further claim of the assessee that as the entire amount of cash deposits were duly recorded in his books of account, therefore, the A.O had grossly erred in disregarding the said factual position and held the same as his unexplained money u....
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....ointed out any mistake or irregularity in the books of account of the assessee which were produced before him, nor found any instance of inclusion of any agriculture income. On the basis of the aforesaid facts, it was the claim of the Ld. AR that it was not only beyond comprehension as to on what basis the A.O had observed that the assessee had tried to relate the cash deposits under question to agriculture income, but also most surprisingly the CIT(Appeals) despite being informed about the aforesaid serious infirmities in the observation of the A.O, and the fact that cash deposits in question were made from the books of account, had however most whimsically discarded the same. In order to fortify his aforesaid contention the Ld. AR had taken us through an undated letter that was filed by the assessee with the A.O in the course of the assessment proceedings, which substantiated the fact that the assessee had not only produced the books of accounts for the year under consideration i.e. A.Y.2017-18 before the A.O in the course of the assessment proceedings, but also those for the immediately two preceding years a/w. copies of the capital account and Balance Sheet for all the said res....
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....d on a perusal of the reply that was filed by him in response to a notice issued u/s.142(1) of the Act by the A.O, wherein the assessee has stated to have produced the books of accounts for the year under consideration a/w. those for the immediately preceding two years before the A.O, Page 10 of APB. Apart from that, I find that the assessee vide his written submission dated 04.09.2020 that was filed before the CIT(Appeals), had categorically stated that it was never his case before the A.O that the cash deposits in the bank accounts under consideration were made by him out of the agriculture income which, in fact, belonged to the HUF and formed part of the latter's returns of income for the year under consideration as well as those for the preceding years. The aforesaid factual position can safely be gathered from the extract of the aforesaid written submission dated 04.09.2020 (supra), which reads as under: "That so far agriculture income is concerned it was duly explained to the Assessing Officer that agriculture land is his ancestral property and therefore, income therefrom was belonged to his HUF and accordingly, agriculture income was shown regularly in the return of his HU....