TaxTMI 
TaxTMI 
2025 (3) TMI 1971
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....e Hon'ble CIT (Appeals) erred in confirming the order dated 30.12.2019, whereby the Learned A.O. has made an addition u/s 69A r.w.s. 115BBE of Rs. 21,39,000/- despite the fact that the assessee has filed the reply in which full explanation has been furnished along with the verification of receipts and sworn affidavits which was verified by the Ld. A.O. too by issuing notice/summons u/s 131 of the Income Tax Act. The Ld. A.O. has taken statements of witness after issuing notices u/s 131. Being satisfied from the verification but dissatisfied from the resultant deposit in bank account was contradictory. The action of the Ld. A.O. was arbitrary, illegal and against the principal of natural justice, therefore deserves to be quashed or set a....
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....essee. The assessee being further aggrieved preferred the present appeal before us. 3. We have gone through the order of the AO, order of the Ld. CIT(A) and submissions of the assessee alongwith grounds taken before us. The outcome of the matter depends on its facts, which are observed as under: A). The assessee deposited Rs. 18.99 Lacs in Karur Vysya Bank and Rs. 7.4 Lacs in ICICI Bank; B). The assessee H.U.F represents his joint family and the members of this joint family has agricultural land in their names, like the assessee's individual has inherited land at District Hanumangarh, Tehsil Nohar to the tune of 31 bighas, the younger brother of the assessee also has same size of land at District Hanumangarh, Tehsil Noh....
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....een mentioned. The assessee has not declared any agriculture income its ITR filed for relevant A.Y. 2017-18 However the list provided with the reply dated 05.10.2018 the assessee has received Rs. 3,05,000/- from the farmer Deepak Kumar during the F.Y. 2016-17, who has accepted in his statement recorded u/s 131 on 11.11.2019. Merely, it is to be said that Rs. 26,39,000 as rent received from ancestral agriculture HUF land by way of cash from grandfather Late Thakur Birendra Singh Jasana (Thakur Sahib) who collected/gathered from the various farmers during the last several years i.e. from 2008 to 2016 was deposited. Since agriculture income is exempt from income-tax so the assessee has taken this plea. If any exemption or ded....
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....ny other income liable to tax. 6. Although, an issue w.r.t. keeping the sum of HUF with his grandfather has relevance, but the same has to be examined w.r.t. back ground of the assessee, his profession/vocation, source of income, age factor, literacy and generation to which he belongs. The total amount as shown by the assessee from various tenants was Rs. 35,30,480/- and the amount under dispute is Rs. 26.39 Lacs, meaning thereby a difference of Rs. Around 10 Lacs and which is sufficient to meet the needs of old person/couple in a village to meet his day-to-day needs. The provisions contained in section 68 To 69D of the Act are deeming provisions and as per the established jurisprudence; to make an assessee liable under this section ther....
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....sumption and the same is to be applied where the assessee offers no explanation about the nature and source of money. It has been held that in order to invoke section 69A it is necessary to prove that the assessee's conviction under sections 132 and 135 of the Customs Act cannot be made the basis for presumption of ownership against the assessee contemplated under section 69A of the Act for making addition under that section. 8. The burden to prove that the assessee is the owner of assets so found is on the revenue. The mere fact that on a search certain assets are found in the possession of a person cannot be said to attract provisions of this section, unless it is established by the revenue that the person in whose possession articles ....