2026 (4) TMI 906

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....eciating the documentary evidences submitted during the appellate proceedings and without establishing that the said credits represented unaccounted income of the appellant. 2. The Ld. CIT(A) has failed to consider that Rs. 24,00,000/- out of the total addition was transferred from the appellant's own KCC account. 3. The Ld. CIT(A) has erred in law and on facts in confirming the addition of Rs. 7,69,335/- being credited in the bank account as agricultural crop sale receipts, despite the fact that the appellant is an agriculturist and had submitted documentary evidences in support of ownership of agricultural land and sale bills of potato crop. The Ld. CIT(A) has failed to appreciate that agricultural income is exempt u....

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....o such undisclosed income. 9. The appellant craves leave to add, amend, alter or withdraw any of the above grounds of appeal at the time of hearing." 3. The assessee is an individual mainly having source of income from agriculture. The case has been selected for assessment under the income tax act 1961. The assessment has been completed determining the total income at Rs. 46,74,238/- while doing so the assessing officer has made the following additions/disallowance: i) Rs. 24,00,000/- is total credit other than cash deposited in his bank account, is amount transferred from his Canara Bank KCC A/c 3424840000025. ii) Rs. 7,69,335/- is total credit other than cash deposited in his bank account, is agriculture crop....

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.... agricultural activities. During the course of assessment proceedings, the Assessing Officer treated the entire bank deposits appearing in the bank account as unexplained income. The Ld. A.R. submitted that despite documentary evidence furnished before the Assessing Officer as well as before the learned NFAC, the authorities below have proceeded to sustain the addition without properly appreciating the explanation and material placed on record. The Ld. A.R. submitted that the appellant could not obtain proper professional guidance at the relevant time due to his rural background and limited access to professional assistance. As a result, a simple matter involving routine banking transactions and agricultural receipts has unfortunately been ....

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....ara Bank Kcc A/c #0025 800000 11/08/16 Canara Bank Kcc A/c #0025 50000 29/10/16 Canara Bank Kcc A/c #0025 100000 31/10/16 Bank Saving Interest 96 11/11/16 Canara Bank Kcc A/c #0025 1000000 12/11/16 Bajrang Oil Mill_Agricultural income 245000 15/11/16 Cash deposit 1000000 21/12/16 Canara Bank Kcc A/c #0025 300000 20/01/17 Dehgam Taluka Co.Op.Pro.Soc_Agri income 100436 25/01/17 Dehgam Taluka Co.Op.Pro.Soc_Agri income 104867 31/01/17 Bank Saving Interest 3726 06/02/17 Dehgam Taluka Co.Op.Pro.Soc_Agri income 104867 08/02/17 Dehgam Taluka Co.Op.Pro.Soc_Agri income 64988 44310 15/02/17 Dehgam Taluka Co.Op.Pro.Soc_Agri income ....

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....icion and conjecture. The Department has not brought any material on record to demonstrate that the appellant had any source of income other than agricultural income or that the impugned deposits represent undisclosed income. In the absence of any evidence of undisclosed business or alternate source of income, the bank deposits by themselves cannot be treated as income of the assessee. The Ld. A.R. relies upon following decisions of the Tribunal wherein it has been consistently held that additions cannot be sustained merely on the basis of bank deposits when the assessee provides a plausible explanation and the Department fails to bring any contrary material on record. (a) Mohmmadharoon Babubhai Shaikh (ITA No. 218/Ahd/2025) ....