MADHUKAR SABU JADHAV ,BIJAPUR vs. INCOME TAX OFFICER, WARD-1 & TPS, BIJAPUR
Income Tax Appellate Tribunal, “SMC” BENCH : BANGALORE
Before: SHRI PRASHANT MAHARISHIAssessment year : 2017-18
This appeal is filed by Madhukar Sabu Jadhav (the assessee/appellant) for the assessment year 2017-18 against the appellate order passed by the Addl/Jt.CIT(Appeals)-10, Mumbai [ld. CIT(A)] dated 7.1.2025 wherein the appeal filed by the assessee against the assessment order passed u/s. 144 of the Income-tax Act, 1961 [the Act] by the ITO, Ward 1 & TPS, Bijapur, was dismissed. Page 2 of 5
The assessee is aggrieved and in appeal before us. 3. Briefly stated the facts show that the assessee is an agriculturist and during the demonetisation period has sold agricultural land admeasuring 10 acres 23 guntas on 22.11.2016. He received cash of Rs.10,000 on 10.11.2016 which was deposited on 11.11.2016 and further Rs.3 lakhs received on 16.11.2016 deposited on the same date and further balance of Rs.10,72,000 cash received on 22.11.2016. Assessee has deposited Rs.5,48,000 on different dates. The assessee has not filed return of income. 4. Notice u/s. 142(1) was issued on 6.2.2018 on the basis of Operation Clean Money of the Income-Tax Department. The assessee did not file any return of income in response to notice u/s. 142(1) of the Act. Fresh opportunity was given to the assessee, but none appeared and therefore the ld. AO passed the best judgment order u/s. 144 of the Act, after obtaining information from the Bank viz., Siddeshwar Co-op. Bank Ltd., Vijayapur Branch, wherein it was found that cash deposit of Rs.5,48,000 is deposited by the assessee during the demonetisation period. The ld. AO assessed the total income of assessee at Rs.5,48,000 by passing assessment order u/s. 144 of the Act on 02.12.2019. 5. The assessee aggrieved with the same appealed before the ld. CIT(A) wherein the assessee submitted that he is an agriculturist holding land admeasuring 34 acres and sold 10 acres on 22.11.2016 for Rs.13,82,000 to Shri Kashinath Laxman Sawant. Cash received from Page 3 of 5
the above sale consideration is deposited in the bank account and therefore source of cash deposit is not unaccounted income of assessee.
The assessee also filed an Affidavit to this effect.
6. The ld. CIT(A) rejected the explanation of the assessee and held that it may be appreciated that the amount of Rs.5,48,000 was deposited in old currency during the demonetisation period. Further it was a fact that Rs.500 & 1,000 notes were no more legal tender from the midnight of 8.11.2016. Therefore accepting the demonetised currency of Rs.5,48,000 after 8.11.2016 does not arise. Accordingly the addition made by the AO was held to be correct and confirmed.
7. The ld. AR submitted a 29 pages paperbook along with written submissions and stated that assessee has sold agricultural land and out of that cash was received which was deposited in the bank account.
Thus, there is no unaccounted income which can be added u/s. 69A of the Act. It was stated that despite furnishing all the details before the CIT(A), the claim of the assessee was not accepted and the order of the AO was confirmed which is not correct.
8. The ld. DR, Shri Ganesh Ghale, vehemently supported the orders of the ld. lower authorities and submitted that the assessee did not submit any reply before the ld. AO, but when the information was submitted before the ld. CIT(A), he held that assessee was not entitled to receive demonetised currency and accordingly addition was confirmed. There is no infirmity in the order of the ld. CIT(A).
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We have carefully considered the rival contentions and perused the order of the ld. lower authorities. It is a fact that assessee is an individual and agriculturist. He was having agricultural land at District Vijayapur admeasuring 34 acres. He has sold part of the agricultural land admeasuring 10 acres to Kashinath Laxman Sawant of Dhannargi Village for Rs.13,82,000 and received the consideration in cash. In an Affidavit, he has given the details in cash received. The affidavit is supported by the photocopy of Sale Deed of agricultural land which is registered in the office of Sub-