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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: SHRI MAHAVIR PRASAD & SHRI AMARJIT SINGH
आदेश/O R D E R
PER AMARJIT SINGH - AM:
The appeal filed by the assessee for A.Y. 2013-14, arise from order of the CIT(A), Gandhinagar, Ahmedabad dated 30.05.2017, in proceedings under section 143(3) of the Income Tax Act, 1961; in short “the Act”.
The instant appeal of the assessee is filed against the decision of the Ld. CIT(A) Gandhinagar, in upholding the addition of opening cash balance to the extent of Rs. 16,67,170/-. Since in all the ground of appeal of the assessee the common issue of addition on account of opening cash balance is involved, therefore, for the sake of convenience all grounds of appeals are adjudicated together.
The fact in brief that return of income declaring income of Rs. 74,450/- was filed on 26.07.2013. The case was subject to scrutiny assessment. The assessment order u/s. 143(3) of the Act was passed on 22.03.2006 and total income was assessed at Rs. 36,77,640/-.
Regarding issue in appeal of addition of Rs. 17,97,190/- as opening balance:-
During the course of assessment the assessee has noticed that assessee has shown opening balance of Rs. 17,97,190/- as on 01.04.2012 for Financial Year 2012-13 relevant to the assessment year under consideration. The AO observed that since the assessee has only income from agriculture and interest income, therefore, he was of the view that such amount of cash balance shown by the assessee was not justified. The assessee has explained that he has filed his return of income disclosing return of income of Rs. 84,450/- and agricultural income of Rs. 21,22,337/- and stated that all document/papers regarding agricultural activities have been submitted in his submission. He has further informed that cash book for financial year 2012-13 has shown opening balance of cash in hand of Rs. 17,97,190/- which was earlier accumulated agricultural income and also stated that copies of agriculture bill for earlier years has been attached for verification. The AO has not agreed with the submission of the assessee and he was of the view that the bill voucher were paid by Gujarat Raajya Beej Nigam Ltd. and assessee has not explained how and when cheques transactions were converted into cash. Therefore, the AO has treated the opening cash balance of Rs. 17,97,120/- as unaccounted income of the assessee.
Aggrieved assessee has filed before the Ld. CIT(A). Ld. CIT(A) has restricted the addition to the extent of Rs. 16,67,170/- on considering the cash withdrawal in the last month of the financial year 2011-12.
During the course of appellate proceeding before us the Ld. Counsel has furnished Paper Book comprising details and copies of document furnished before the AO and Ld. CIT(A). The Ld. Counsel has contended that assessee source of income of assessee is agricultural income only and there is a small amount of interest which was shown in the return of income. He has further contended that during the year under consideration the assessee has shown substantial amount of agricultural income of Rs. 21,22,337/- which has not been disputed by the AO. He has further stated that during the course of assessment proceeding the assessee has submitted the copy of return of income, balance sheet and bank withdrawal from different banks of earlier year which demonstrate that assessee was having sufficient agriculture income and cash withdrawal from banks. However, the AO and Ld. CIT(A) has not controvert the detail and document furnished by the assessee. Therefore, the decision of the Ld. CIT(A) sustaining the addition is unjustified.
On the other hand, the Ld. DR has supported the order of CIT(A).
We have heard both the sides and perused the material on record carefully. After perusal of the material on record it is noticed that assessee is an individual and main source of income is from agriculture and during the year under consideration the assessee has earned net agriculture income of Rs. 21,22,327/- which was not disputed by the lower authority. The assessee has non-agricultural income of Rs. 74,450/- as interest from saving under the head income from other source which was disclosed in the return of income filed by the assessee.
During the course of assessment proceeding the assessee has filed detail and information of all his bank account where the cash was deposited and AO has not raised any query regarding the cash deposit in the bank accounts. Regarding query of the AO about the opening cash of Rs. 17,97,190/- the assessee has submitted the balance sheet as on 31.03.2012 as per which the closing cash in hand was to the amount of Rs. 17,97,190/-. The assessee had also filed his return of income for preceding year 2012-13 along with balance sheet for assessment year 2012-13 which indicate that there was closing cash balance of Rs. 17,97,190/-. Without disproving the fact reported in the return of income filed by the assessee for A.Y. 2012-13 as per which the assessee has shown closing cash balance of Rs. 17,97,190/- the AO has made addition of opening cash balance for the year under consideration. On perusal of the material on record it is noticed that the opening cash balance of Rs. 17,97,190/- as on 01.04.2012 was the closing cash balance as on 31.03.2012. The assessee has submitted the supporting relevant evidence before the AO i.e. the copy of balance sheet for A.Y. 2012-13 (F.Y. 2011-12) which demonstrate that assessee’s closing balance of Rs. 17,97,190/- was supported by the return of income filed for A.Y. 2012-13. It is undisputed fact that assessee has been regularly driving income from agriculture activity and during the earlier year also the assessee has shown tremendous amount of agricultural income in the immediately preceding assessment year. As per Paper Book Pages No. 33 to 51 the assessee has filed detail of bank cash and income detail from financial year 2007-08 to financial year 2011-12, however, the AO has failed to disprove this fact reported by the assessee that he was having sufficient agricultural income and bank withdrawal and the amount of opening cash balance was duly disclosed in the preceding year return of income and duly supported with the balance sheet for financial year 2011-12. In the light of the above facts and circumstances we observe that AO has failed to disprove the genuineness of substantial amount of agricultural income earned by the assessee and withdrawal of cash from the bank which were generated on account of agricultural income and also failed to disprove that the closing cash balance of Rs. 17,97,190/- was shown in the balance sheet and return of income filed in the previous year. Considering the above facts and circumstances we consider that Ld. CIT(A) is not justified in sustaining the addition made by the AO without disproving the genuineness of opening cash balance which was supported with relevant evidences i.e. return of income of previous year and balance sheet and agricultural income and bank withdrawal etc. Therefore, appeal of the assessee is allowed.
In the result, the appeal of the assessee is allowed.
This Order pronounced in Open Court on 30/07/2019
Sd/- Sd/- (MAHAVIR PRASAD) (AMARJIT SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 30/07/2019 TANMAY TRUE COPY आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4.आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध,आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file.