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Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH
Before: SHRI PRADIP KUMAR KEDIA & SHRI MAHAVIR PRASAD
PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. This appeal filed by the Assessee is directed against the order of the Ld. CIT(A), Gandhinagar, Ahmedabad dated 27.02.2017 pertaining to A.Y. 2008- 09 and following grounds have been taken: 1. The Id.AO as well as the Id. CIT (A) has erred in law and in considering the facts of the case and has disallowed the gift received from the relatives of the
ITA No. 789/Ahd/2017 2 . A.Y. 2008-09 appellant. The ld. CIT (A) has disallowed the gift of Rs.1,25,000/- from his mother, Rs.75,000/- from his wife and Rs.4,5 0,000/- from his father. 2. The ld. CIT (A) has erred in law and has erred in considering the documents placed on record and has made the addition without considering the statements recorded by the Id.AO during the course of remand report proceedings. 3. The ld. CIT (A) as well as the Id. AO has erred in law and in facts of the case and has made the entire addition on the basis of the presumption basis. Thus the addition made by the Id.AO and upheld by the Id. CIT (A) needs to be deleted. 4. The learned CIT(A) has erred in law and on facts of the case in confirming action of the Id. AO in levying interest u/s 234A/B/C of the Act. 5. The learned CIT(A) has erred in law and on facts of the case in confirming action of the Id. AO in initiating penalty u/s 271(l)(c) of the Act.
During the assessment proceeding the assessee filed his return of income on 14/10/2015 declaring total income at Rs. 78,812/- and agriculture income at Rs. 2,02,150/-. The following issue arose for discussion during the course of assessment proceedings.
The assessee has made the cash deposits of Rs. 10,72,800/- in saving bank account No. 247010100063151 with the Axis bank account. During the assessment proceedings it is come to the noticed that the assessee is also having saving bank account No. 07821000007295 with HDFC bank wherein the assessee has made the cash deposit at Rs. 5,04,500/- during the F.Y. 2007-08. The assessee was asked to furnish the source of aggregate cash deposits at Rs. 15,77,300/- (1072800+504500) in his savings bank accounts with substantial evidences.
ITA No. 789/Ahd/2017 3 . A.Y. 2008-09 4. In response to the notice the assessee has furnished the books of account alongwith the bank statement and Cash book. The assessee has also furnished the copy of form No. 12 (agriculture land record).
On verification of the land record it is noticed that in land at survey no. 167/1 admeasuring 10345 sq. meter land, in land record column of crop grown name written as "useless farm" (Padtar land)'. As regards the survey no. 10/ paiki 2 admeasuring 4995 sq. meter land it has been written as "no information available" in, land record. It is noticed that the assessee has shown opening cash on hand at Rs. 4,25,255/-, agriculture income at Rs. 2,02,000/- and unsecured loan at Rs. 2,03,500/-. The assessee has not furnished any supporting evidence as regards to opening cash on hand at Rs. 4,25,255/-. Further, the assessee has also not furnished any supporting sale bills of agriculture sale products with regards to the agriculture income. Since the assessee has failed to furnish the source of cash deposits at Rs. 15,77,300/- (1072800+504500) in saving bank accounts the assessee vide this office letter bearing No. ITO/Wd-1 /Patan/142(1 )/RBK/Show cause/2015-16 dated 15/09/2015 asked to show cause as to why the cash deposit of Rs. 15,77,300/- should not be treated as deposited from the unaccounted source of income and added to your total income.
In response to the show cause notice the assessee vide his letter dated 19/10/2015 stated that whatever cash deposited by him in the Axis Ban account and HDFC bank accounted is deposited by withdrawing from the said bank accounts and redeposit. Therefore, instead of making addition of entire cash deposit take the peak of my cash and make the addition accordingly.
ITA No. 789/Ahd/2017 4 . A.Y. 2008-09 7. The reply of the assessee has considered carefully and found there is some force in the contention of the assessee's reply. Therefore, the calculation of peak cash amount is worked as under: Date Op. balance Withdrawal Deposit Balance
04.04.2007 2000 2000
04.04.2007 2000 500 2500
18.04.2007 2500 2400 100
19.04.2007 100 20000 20100
19.04.2007 20100 20000 40100
20.04.2007 40100 400 40500
03.05.2007 40500 10000 50500
04.05.2007 50500 2000 52500
21.05.2007 52500 1500 54000
29.05.2007 54000 2500 51500
05.06.2007 51500 200 51300
06.06.2007 51300 1 00000 -48300
j. 07.06.2007 -48300 9900 -58200
i 09,06.2007 -58200 50000 -108200
12.06.2007 -108200 25000 -133200
15.06.2007 -133200 8500 -141700
22.06.2007 -141700 8200 -133500
25.06.2007 -133500 700 -132800
25.06.2007 -132800 20000 -112800
29.06.2007 -112800 2000 -110800
10.07.2007 -110800 500 -100300
1 1 .07.2007 -110300 2000 -108300
ITA No. 789/Ahd/2017 5 . A.Y. 2008-09
12.07.2007 -108300 4000 -104300
13.07.2007 -104300 100 -104200
24.07.2007 -104200 500 103700
25.07.2007 -103700 10000 -113700
28.07.2007 -113700 2000 -111700
01.08.2007 -111700 1700 -113400
01.08.2007 -113400 23000 -136400
01.08.2007 -136400 17000 -153400
02.08.2007 -153400 3000 -156400
02.08.2007 -156400 2500 -158900
07.08.2007 -158900 45000 -203900
08.08.2007 -203900 10000 -213900
1 3.08.2007 -213900 4500 -218400
1 6.08.2007 -218400 2000 -220400
17.08.2007 -220400 15000 6000 -229400
21.08.2007 -229400 80000 -149400
21.08.2007 -149400 4000 -145400
22.08.2007 -145400 . 18000 -163400
29.08.2007 -163400 50000 -213400
03.09.2007 -213400 2500 -210900
06.09.2007 -210900 7500 -203400
12.09.2007 -203400 2000 -201400
21.09.2007 -201400 1 50000 -51400
24.09.2007 -51400 2500 -48900
24.09.2007 -48900 20000 -28900
ITA No. 789/Ahd/2017 6 . A.Y. 2008-09 25.09.2007 -28900 20000 -8900
25.09.2007 -8900 20000 . 11100
26.09.2007 11100 12000 23100
03.10.2007 23100 6500 16600
04.10.2007 16600 28000 -11400
05.10.2007 -11400 49500 -60900
06.10.2007 -60900 49900 -110800
15.10.2007 -110800 1000 -111800
22.10.2007 -111800 49500 -161300
24.10.2007 -161300 49900 -211200
25.10.2007 -211200 49500 -260700
26.10.2007 -260700 48500 -309200
29.10.2007 -309200 4000 -313200
02.11.2007 -313200 2500 -315700
05.11.2007 -315700 35000 -350700
06.11.2007 -350700 45000 -395700
07.11.2007 -395700 4500 1 5000 -407200
21.11.2007 -407200 ——— 1 0000 -417200
22.1 1.2007 -417200 12000 -529200
03.12.2007 -529200 15000 -514200
06.12.2007 -514200 15000 -499200
10.12.2007 -499200 6000 -493200
24.12.2007 -493200 18000 -475200
31.12.2007 -475200 1000 -474200
08.01 .2008 -474200 20000 -454200
08.01.2008 -454200 20000 -434200
ITA No. 789/Ahd/2017 7 . A.Y. 2008-09
10.01.2008 -434200 200000 -634200
11 .01 .2008 -634200 75000 -709200
16.01.2008 -709200 10000 -719200
16.01.2008 -719200 5000 -724200
23.01.2008 -724200 83000 -807200
24.01.2008 -807200 70000 -877200
25.01.2008 -8777200 100000 -977200
08.02.2008 -977200 7000 -984200
13.02.2008 -984200 3500 Peak Balance - 987700
1 6.02.2008 -987700 11000 -976700
18.02.2008 -976700 1500 -978200
03.03.2008 -978200 6000 -972200
. 05.03.2008 -972200 70000 -832200
05.03.2008 -832200 20000 -812200
05.03.2008 -812200 180000 -632200
260.32008 -632200 3000 -635200
The reply of the assessee dated 19.10.2015 considered and peak cash of HDFC bank and Axis bank account wherein the assessee has made the cash deposit is worked out as above and peak cash at Rs.9,87,700/- is added to the total income of the assessee.
Against the addition of Rs. 9,87,700/-, assessee preferred first statutory appeal before the ld. CIT(A) who partly allowed the appeal of the assessee.
Now assessee has come before us.
ITA No. 789/Ahd/2017 8 . A.Y. 2008-09
We have gone through the relevant record and impugned order. So far an amount of Rs. 1,25,000/- is concerned, this amount was taken by theassessee from his Mother Kantaben Rajput. She appeared before the Assessing Officer during remand proceeding and stated on oath that she is engaged in dairy farming. She earns income from dairy farming activities. She does not have any permanent account number and neither does has any bank account and she is mother of the assessee and further stated that her income is approximately Rs. 1,00,000/- per annum and from his past savings. She had deposit of Rs. 1,25,000/- as well as also submitted an affidavit to this effect. And department could not brought anything against the statement of the mother of the assessee. Thus, statement of Kantaben Rajput cannot be discarded, it can be easily believed that a house wife must have been an amount of Rs. 1,25,000/- as in Indian family system there is tendency that house wife generally keep some money with them from their past saving for emergency purpose. Therefore, in India house wife is also called Laxmi (Goddess of Wealth). Therefore, we allow the claim of the assessee.
The assessee has claimed to have Rs. 75,000/- from his wife and Rs. 4,50,000/- from his father, the A.O. has recorded statements of both the persons were recorded and parties admitted that they have given gift to the appellant out of animal husbandry business and they have also field affidavit before the ld. A.O. And his father is having agricultural land 2.54 hectare. And before the A.O. during remand proceedings, one person proprietary of Vardhman Traders, Patan also appeared before the ld. A.O. to whom appellant has sold agriculture produce and copies of bills etc. were submitted with the A.O. and ld. A.O. could not brought anything on record which prove that these details are incorrect. It is fact that family members are having income from dairy farming
ITA No. 789/Ahd/2017 9 . A.Y. 2008-09 and agriculture activities and their statements have been recorded by the A.O. Thus, claim of the assessee cannot be rejected. Thus, this ground of appeal of the assessee is allowed.
In the result, appeal filed by the assessee is allowed.
Order pronounced in Open Court on 24 - 04- 2019
Sd/- Sd/- (PRADIP KUMAR KEDIA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad: Dated 24 /04/2019 Rajesh Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent. 3. The CIT (Appeals) – 4. The CIT concerned. 5. The DR., ITAT, Ahmedabad. 6. Guard File. By ORDER
Deputy/Asstt.Registrar ITAT,Ahmedabad