SHRI CHARANJIT SINGH,LUDHIANA vs. ITO WARD-3(2), LUDHIANA

From case records, it emerges that pursuant to receipt of information of cash deposit of Rs.25.50 Lacs by the assessee during this year, the case was reopened and notice u/s 148 was issued. The assessee declared regular income of Rs.1.05 Lacs and agricultural income of Rs.7.50 Lacs. After due consideration of assessee’s replies, Ld. AO accepted source of deposits for Rs.9.50 Lacs and made addition of Rs.16 Lacs for want of satisfactory evidences from the assessee.

The Ld. CIT(A) noted that it was accepted fact that the assessee was owner of agricultural land which was used during the year for cultivation of crops. Therefore, income from agricultural operations could not be denied. The income of Rs.50,000/- per acre could be estimated to be arising out of agricultural operations. As per cash flow statement, the assessee had opening cash of Rs.8 Lacs. Total availability of cash in the form of past savings and income from agriculture and receipts from sale of animals could not be doubted. Considering all these facts, Ld. CIT(A) restricted the impugned addition to the extent of Rs.6 Lacs. Still aggrieved, the assessee is in further appeal before us.

We find that the assessee is an agriculturist and not well versed with income tax proceedings. He was fully dependent of legal counsel for income tax proceedings and therefore, he could not be penalized for lapse on the part of its counsel for late filing of present appeal. Accordingly, we condone the appeal and admit the appeal. In view of the fact that accumulation from past savings could not be denied and no fault has been found in the cash flow statement of the assessee, we restrict the impugned addition to the extent of Rs.3 Lacs. The Ld. AO is directed to re-compute the income of the assessee. No other ground has been urged in the appeal.

The appeal stand allowed for statistical purposes. Order pronounced on (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR