2025 (8) TMI 1173

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....961 (hereinafter referred to as 'the Act') dated 28.03.2022 by the Assessing Officer, NaFAC, Delhi (hereinafter referred to as 'ld. AO'). 2. Though the assessee has raised several grounds, the only effective issue to be decided in this appeal is as to whether the Learned NFAC was justified in upholding the addition made in the sum of Rs. 1,13,31,950/- on account of cash deposits in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the materials available on record. The assessee holds a total landholding of 60 bighas of land at Fatehpur, VPO, Nanauta, Tehsil Rampur Maniharan, District Saharanpur, Uttar Pradesh. The primary source of income, it was stated that the primary source of income of....

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.... benefit of set off against agricultural income amounting to Rs. 20,12,800/- as explained, in respect of cash deposits. The assessee also furnished a cash flow statement which reflected a peak credit workings containing peak credit of Rs. 19,77,410/- as on 28-01-2016 excluding the agricultural income. It was submitted that once the agricultural income is also included in the said workings, there would be no addition that would be warranted in the case of the assessee. 4. The Learned CITA identified certain discrepancies in the peak credit workings submitted by the assessee and proceeded to ignore the same. Some of the discrepancies pointed out by the Learned CITA in the peak credit workings are that the assessee had claimed certain payment....

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....aximum amount not chargeable to tax and hence there was no obligation on the part of the assessee to file the return of income. The Learned AR also sought to explain that the Learned CITA erroneously referred to the credit amount of Rs. 12 lakhs on 31-3-2016 while factually no such credit entry of Rs. 12 lakhs existed neither in the Pratama UP Gramin Bank nor in the loan account maintained with Punjab National Bank as on 31-3- 2016. Further, the Learned AR also submitted that there were certain transactions of amounts received and paid from / to Mr. Jatinder Kumar (son of the assessee) who is regularly assessed to tax and in support of which the copy of income tax return of the son together with his bank statements were placed on record. He....

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.... loan from Punjab National Bank. It is to be noted that the assessee's only source of income is from agriculture which fact has also been accepted by the revenue by accepting agricultural income of Rs. 20,21,800/-. However, there were certain cash deposits made in the bank accounts together with the cash withdrawals. The agricultural income transactions as claimed by the assessee have been duly accepted by the revenue already. Hence the other cash transactions of cash (i.e both cash withdrawals including bearer cheque transactions and cash deposits) are to be worked out separately to consider the peak negative cash balance, if any, to arrive at the income of the assessee. For this purpose, the only method is to consider the peak negative ba....