SHRI. MALLIKARJUN SIDDAGADA HOSAGANA,VIJAYAPUR vs. THE INCOME TAX OFFICER, WARD- 1, VIJAYAPUR

2. As per Ground Nos. 1 to 7 raised before the tribunal, this is the grievance of the assessee that learned CIT (A) is not justified in upholding the addition of Rs. 45.06 Lacs made by the AO u/s 69 of I T Act, 1961.

Relevant facts in brief are that the AO noted in Para 4 of the assessment order that the assessee has deposited cash of Rs. 55.21 Lacs in bank and after considering various arguments raised by the assessee, the AO accepted that there is gross agricultural income of Rs. 10.15 lacs and to this extent, he accepted the source of cash deposits in bank as explained but for the balance amount of Rs. 45.06 Lacs, he made addition u/s 69 to the total income declared in the return of income Es. 2 lacs in addition to net agricultural income declared by the assessee of Rs. 7.25 Lacs. Being aggrieved, the assessee carried the matter in appeal before CIT (A) and this was one of various arguments raised before CIT (A) as noted by him in Para 2 of his order that a portion of cash deposit in bank account is re deposit of cash earlier withdrawn from bank. Learned CIT (A) has reproduced the written submissions filed by the assessee before him and from the same also, it is seen that it was contended by the assessee before CIT (A) that some of the cash deposits are out of cash withdrawn from the same account on previous days. Learned CIT (A) confirmed the assessment order without any finding in respect of this claim of the assessee that some of the cash deposits are out of cash withdrawn from the same account on previous days. Now the assessee is in further appeal before the tribunal.

In course of hearing, the learned AR of the assessee reiterated the same contentions which were raised before CIT (A). She also submitted a month wise chart of Cash withdrawal and deposit in the bank and pointed out that there are cash withdrawals of Rs. 43,80,600/- in this year and there is income of Rs. 2 lacs declared by the assessee in the return of Income in addition to agricultural income. She contended that the AO has allowed the benefit of agricultural [Type text] income but he has not allowed the benefit of cash withdrawals of Rs. 43,80,600/- in this year and income of Rs. 2 lacs declared by the assessee in the return of Income in addition to agricultural income. She also submitted that the copy of Bank Statements is available on pages 37 to 57 of the paper book and the chart of Cash withdrawal and deposit in the bank can be verified with the same and once this cash withdrawal Rs. 43,80,600/-and income of Rs. 2 lacs is considered, the entire addition made by the AO of Rs. 45.06 Lacs should be deleted because this addition is made by the AO by alleging that the source of cash deposit is not explained by the assessee but the same is properly explained being out of cash withdrawal Rs. 43,80,600/-and income of Rs. 2 lacs. Learned DR of the revenue supported the orders of the lower authorities.

I have considered the rival submissions. I find that the assessee has declared an income of Rs. 2 lacs in the return of Income in addition to Rs. 7.25 Lacs declared by the assessee as agricultural income. The AO has accepted Rs. 10.15 Lacs as Gross Agricultural income and considered the same as source of cash deposit in bank but he has not considered the income of Rs. 2 Lacs in this regard. Moreover, the earlier cash withdrawals from bank is also not considered by him as source of cash deposit in bank. In my considered opinion, both of these have to be accepted as proper source of cash deposit in bank and I do so, entire amount of Rs. 45.06 lacs added by the AO as unexplained cash deposit [Type text] has to be delated because the explanation is of Rs. 45.81 Lacs leaving balance of Rs. 0.75 Lacs towards drawings. Hence, I delete this addition.

In the result, the appeal of the assessee is allowed.

Date of Dictation ………………………………………………………..

Date on which the typed draft is placed before the dictating Member …………………………………. 3. Date on which the approved draft comes to the Sr. P. S. ……………………………………………………………….. 4 Date on which the order is placed before the dictating Member for pronouncement ……………….. 5. Date on which the order comes back to the Sr. P.S. ………………………………………………………….. 6. Date of uploading the order on website ………………………………………………………………………….. 7. If not uploaded, furnish the reason for doing so………………. 8. Date on which the file goes to the Bench Clerk …………………………….. 9. Date on which order does for Xerox & endorsement ………………………………. 10. Date on which the file goes to the Head Clerk……………. 11 The date on which the file goes to the Assistant Registrar for signature on the order……………………………. 12 The date on which the file goes to the dispatch section for dispatch of the Tribunal order…… 13 Date of dispatch of order…………… [Type text]