SMT PUSHPALATA MARUTI GHULE,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE -14, PUNE

Briefly stated, the facts of the case are that the assessee is an individual who filed return declaring total income of Rs.30,95,781/-.

During the course of assessment proceedings, the Assessing Officer (AO) observed that a sum of Rs.13,73,000/- was deposited in cash in the bank account of the assessee maintained with Sadhna Sahakari Bank Ltd. Pune. On being called upon to explain the source of deposit in the bank account, the assessee submitted that she was a widow and staying with her only handicapped dependant son having some cultivable land. Considering the fact that the assessee’s land holding was less and income therefrom was insufficient to justify the availability of cash deposited in the bank, the AO treated sum of Rs.13.73 lakh as unexplained money u/s.69A of the Act. The ld. CIT(A) confirmed the addition by observing that the assessee sold some property during the year under consideration and this amount was nothing but on-money received by her which was deposited in the bank account. Aggrieved thereby, the assessee has come up in appeal before the Tribunal.

I have heard both the sides and gone through the relevant material on record. The assessee has tendered an explanation before the ld. CIT(A) which has been recorded by the CIT(A) in the order stating that her date-wise agricultural income was Rs.3,62,700/-. In addition, she made withdrawals date-wise totalling Rs.10,72,000/- from her bank account with total amount coming to Rs.14.34 lakh and it was out of this amount, that she deposited Rs.13.73 lakh in the bank account that has been added by the AO. The authorities below have simply brushed aside the explanation of the assessee without showing that such agricultural receipts/withdrawals from the bank were used elsewhere. Taking into consideration the entirety of facts and circumstances of the instant case, I am satisfied that the assessee has genuinely explained the source of deposits in the bank account amounting to Rs.13.73 lakh as emanating from the withdrawals made from the bank account during the same year as well as certain agricultural receipts. I, therefore, order to delete the addition.

In the result, the appeal is allowed.