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Facts
The assessee filed a return of income for AY 2017-18 admitting Rs.3,62,180/-. The case was selected for limited scrutiny. The Assessing Officer found cash deposits of Rs. 19,90,000/- during the demonetisation period, which the assessee claimed were out of agricultural sale proceeds. However, the assessee had declared only Rs. 1,97,500/- as agricultural income and failed to provide corroborative evidence.
Held
The Tribunal observed that the assessee failed to submit crucial documents like books of accounts, cash receipts, and buyer details to substantiate the agricultural income. Considering the interest of justice, the assessee was granted one more opportunity to present necessary documents before the Assessing Officer.
Key Issues
Whether the cash deposits during the demonetisation period can be treated as unexplained investments in the absence of adequate corroborative evidence.
Sections Cited
143(3), 69, 115BBE
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Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL & HON’BLE SHRI MANU KUMAR GIRI
(िनधा�रणवष� / Assessment Year: 2017-2018) Vs. The Income Tax Officer, Veeraraghavan Mannappa Nacikar, Non Corporate Ward 22(5) 1,Kunnathur Village, Tambaram. Manamai P.O., Kalpakkam, Chennai 603 102. [PAN: AKVPM 6144] (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/ Appellant by : Shri R. Viswanathan, C.A., ��यथ� क� ओर से /Respondent by : Ms. Kavitha, IRS, Addl. CIT. सुनवाई क� तार�ख/Date of Hearing : 21.11.2024 घोषणा क� तार�ख /Date of Pronouncement : 25.11.2024 आदेश / O R D E R PER MANU KUMAR GIRI (Judicial Member) This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in order No.ITBA/NFAC/S/250/2024-25/1067107862(1) dated 29.07.2024. The assessment was framed by the Income Tax Officer, Non Corporate Ward 22(5), Tambaram, Chennai for the assessment year 2017-18 u/s.143(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’), vide order dated 11.12.2019.
Brief facts of the case are that the assessee e-filed his return of income for the asst. year 2017-18 on 30/12/2017 admitting a total income of Rs.3,62,180/-. The case was selected for limited scrutiny under CASS. A notice u/s 143(2) of the Act dated 24/09/2018 was duly served on the assessee and notice u/s 142(1) of the act was also issued on 12/07/2019 calling for certain details through e-proceedings. In response to the notices issued, assessee furnished only the bank statements. On verification of the bank statements the ld. Assessing Officer found that the assessee has made cash deposit of Rs. 19,90,000/- during demonetisation period. The assessee vide his letter dt. 28/11/209 explained that the cash deposits made in the bank accounts are out of sale proceeds of agricultural produce. The ld. Assessing Officer found from the return of income filed the assessee has admitted only Rs. 1,97,500/- as agricultural income. The assessee has not produced any corroborative material evidences such as vouchers, bills or books of accounts to prove that the cash deposited with bank during the Demonetisation period of 09.11.2016 to 31.12.2016 are out of sale proceeds. Hence, the ld. Assessing Officer treated the cash deposits made into the bank during the demonetisation period as the Unexplained investments of the assessee as per the provisions of the Section 69 of the Act and accordingly a sum of Rs. 19,90,000/- is assessed as income of the assessee under the head "Unexplained Investments found in Bank account and is assessed to tax under the provisions of section 115BBE of the Act.