2025 (8) TMI 1684

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.... Act') by ITO, Ward-1, Panipat (hereinafter referred to as 'ld. AO'). 2. The only effective issue to be decided in this appeal is as to whether ld JCIT(A) was justified in confirming the addition made on account of cash deposits in the facts and circumstances of the instant case. 3. None appeared on behalf of the assessee. I have heard the ld DR and perused the material available on record. The assessee filed its return of income for assessment year 2017-18, declaring agricultural income of Rs.14,69,626/- on 07.10.2019 in response to notice issued u/s 142(1) of the Act. During the course of assessment proceedings, the assessee was asked to explain the source of cash deposits of Rs.13 lacs made in KCC Bank Account No. 06825115001164, m....

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....ned money u/s 69A read with section 115BBE of the Act by the ld AO and the additions made in the assessment. 4. The assessee filed a detailed written submission before the ld JCIT(A). The assessee also furnished the letter issued by 3 Aarhtis M/s. Mangla Associates, M/s. Singroha Trading Co, M/s. Bali Ram Raj Kumar, clearly mentioning the mode of payment thereon. The assessee submitted that cash was received from Aarhtis in the following manner:- Name of Aarhti Particulars Date of Form J Amount (Rs.) Copy of Form j Attached at Page No. M/s Mangla Associates Form- J 28/09/2016 1,62,557 4 M/s Singroha Trading Co. Form-J 14/10/016 96,227 5 M/s Bali Ram Raj Kumar Form-J 28/10/2016 72,4....

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....mputation from the income returned by the assessee and accepted the same to be claimed as exempt. Only a sum of Rs.5,15,000/- was added on account of cash deposit during demonetization period. It is not the case of the revenue that the cash deposits were made in excess of agricultural income and sale consideration of agricultural land received in cash. Rather, the assessee has sufficient cash balance in his kitty to make the cash deposits of Rs.13 lacs during the year, including the cash deposits during demonetization period in the sum of Rs.5,15,000/-. Hence, I am of the considered opinion that the entire cash deposits stood properly explained, including the cash deposits made during demonetization period. Hence, there is no scope for trea....