TaxTMI 
TaxTMI 
2025 (2) TMI 1930
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....his appeal are stated in brief. The assessee, before us, in an Individual and filed his return of income for assessment year (AY) 2013-14, on 31/07/2013, declaring total income of Rs. 1,14,848/-. Later on, the information was received from the DDIT (Inv) Jamnagar stating that the assessee had deposited cash of Rs. 37,00,000/-, in saving bank account, during financial year (FY) 2012-13 and the source to the extent of Rs. 3,78,000/- was explained and source of remaining cash deposits was not explained with supporting evidences. Based on this information, the case was re-opened u/s 147 of the Act and a notice u/s 148 was issued on 08/05/2020, after obtaining prior approval of PCIT, Jamnagar and was duly served on the assessee. During the assessment proceedings, in response to the notice issued by the assessing officer, the assessee explained the source of cash deposit stating that assessee was engaged in business of selling of milk and the milk which the assessee used to sale were not purchased from the market but produced from livestock the of assessee and moreover, during the year, the assessee has sold the livestock as belonging to him. Thus, assessee explained the genuineness of c....
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....12 and 8A, the proof for agricultural land holding (Vide page 04 to 07.). (iii). Evidences along with Affidavit by purchaser party of cows/buffaloes, as an evidence of sale of cattle and bullock cart, (vide paper book page No. 04 to 07.) (iv). Affidavit by purchaser party of cows/buffaloes as an evidence of sale of cattle and bullock cart (vide paper book page no. 16 to 28 along with, the reply dated 20.02.2021). (v). Copy of sale deed (Paper book page no. 31 to 39, along with reply dated 20. 02. 2021 (vide paper book page No. 08-16). 6. The Learned Counsel stated that without verifying any of these above evidences, the alleged addition was made, by the assessing officer, ignoring the actual facts of the case. The Learned Counsel also stated that when the assessee has already provided the explanation of the source of cash deposited into bank account, along with evidences, vide reply to notice, dated 22.12.2020, during appellate proceedings. The Ld. CIT(A) called a remand report from the assessing officer. During the remand proceedings, the assessee submitted the date- wise breakup of cash deposited along with source of such cash deposit and reference o....
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.... the livestock, belonged to him. The assessee had also sold the cattle- cart and land in the beginning of the financial year. The source of cash deposit has been duly explained and all the documents were duly submitted, before the assessing officer. The assessing officer did not find any fault in these documents and evidences submitted by the assessee, except to say that explanations of the assessee are not acceptable. We find that source of the cash deposited, which is out of cash available, out of earlier savings and cash received from sale of Bullocks, Cows, Buffaloes and Agricultural land, which were duly supported with the documentary evidences. The assessee also submitted the Affidavit stating all the facts and for that ld. Counsel for the assessee, relied on the judgement of Hon`ble Supreme Court, in case of Mehta Parikh 7 Co. V. CIT [1956] 30 ITR 181(SC), wherein it was held that "when there is no material on record to disprove the veracity of a statement made in affidavit, a finding arrived at ignoring the statement in the affidavit would be finding based on no evidence and a finding which no person acting judicially could have arrived at. "In holding so, we draw support a....
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....e into account all these facts and circumstances and hence in our opinion, the ends of justice would be met, if the impugned disallowance to the extent Rs. 2,00,000/-, in lump sum only should be sustained in the hands of the assessee, with a rider that same shall not be treated as a precedent. 12. Before parting, we would like to make it clear that since the assessee has disclosed the total income of Rs. 1,14,848/-, in the return of income, on account of cash deposited, in the bank account, therefore, the assessing officer should make the net disallowance to the extent of Rs. 85,152/- (Rs. 2,00,000- Rs. 1,14,848) in the hands of the assessee, and compute the tax, by following the normal rate of tax. 13. In the result, appeal of the assessee is allowed partly, in above terms. Order is pronounced on 11 / 02 /2025 in the open court. ============= Document 1 Annexure-A Source of cash amounting to Rs. 37.00.000/- Particular Amount in Rs. cash amounting Activity of Purchaser /Source of Purchase to Rs. 37.00.000/- Documentary evidence Cash available out of earlier Savings of Agriculture Activity 2,00,000/ Land Records are submitted during Assessment proceedings Pl....