NIRBHAYA SINGH,UJJAIN vs. INCOME TAX OFFICER 1(1), UJJAIN
No AI summary yet for this case.
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI VIJAY PAL RAO & SHRI B.M. BIYANI
आदेश / O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by appeal-order dated 13.12.2023 passed by learned Commissioner of Income-Tax (Appeals), NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 25.10.2016 passed by learned ITO, 1(1), Ujjain [“AO”] u/s 144/147 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2009-10, the assessee has filed this appeal on following grounds:
“1. The Ld. CIT(A) NFAC has erred in upholding re-opening of assessment u/s 147.
Page 1 of 9
Shri Nirbhay Singh, Ujjain I.T.A.No. 81/Ind/2024 – AY 2009-10
The Ld. CIT(A) NFAC has erred in upholding the addition of Rs. 7,50,000/- treating it as unexplained cash deposit made in the bank.
It was proved before the lower authorities that the assessee is an agriculturist and has an income from the agriculture and had sold the agriculture land whereby the cash deposit is explained.
The addition of Rs. 7,50,000/- may please be deleted.”
The brief facts are such that the assessee-individual is stated to be
engaged in doing agricultural work only. The AO, based on an information
from A.I.R. that the assessee has made a total cash deposit of Rs.
15,00,000/- in Narmada Malav Gramin Bank during the previous year
2008-09 relevant to AY 2009-10, issued notice u/s 148 followed by notice
u/s 142(1) to assessee. However, finding no response from assessee, the AO
ultimately passed assessment-order u/s 144 r.w.s. 147 of the Act assessing
the entire deposits of Rs. 15,00,000/- as income from undisclosed sources.
Aggrieved, the assessee carried matter in first-appeal and made
submission. The CIT(A) recorded assessee’s submission and granted part-
relief of 50% (Rs. 7,50,000/-) and upheld remaining 50% addition. The order
passed by CIT(A) is extracted below:
Page 2 of 9
Shri Nirbhay Singh, Ujjain I.T.A.No. 81/Ind/2024 – AY 2009-10
Page 3 of 9
Shri Nirbhay Singh, Ujjain I.T.A.No. 81/Ind/2024 – AY 2009-10
Page 4 of 9
Shri Nirbhay Singh, Ujjain I.T.A.No. 81/Ind/2024 – AY 2009-10
Page 5 of 9
Shri Nirbhay Singh, Ujjain I.T.A.No. 81/Ind/2024 – AY 2009-10
Still not satisfied by the relief given by CIT(A), the assessee has come
in next appeal before us.
Ld. AR for assessee drew our attention to the submission made by
assessee in first-appeal recorded by CIT(A) in Para No. 4.0 of his order, re-
produced above. Referring to same, Ld. AR explained that the assessee is an
agriculturist and the sole source of income is agriculture from about 22
bighas of irrigated land. So far as the source of deposits in bank a/c is
concerned, the assessee explained two sources to CIT(A) in Point 10 of his
submission, namely (i) the assessee sold part of his agricultural land for Rs.
6,50,000/- (correct figure is Rs. 6,50,500/-) on 21.03.2009 for which
advance of Rs. 6,00,000/- was received on 15.10.2008, and (ii) remaining
cash was deposited out of early years’ savings and agricultural income. The
assessee also submitted copy of registered sale-deed to CIT(A). However,
while adjudicating first-appeal, the CIT(A) has only given benefit of funds
available from agricultural income to the extent of Rs. 7,50,000/- only. The
CIT(A) has not given benefit of sale-proceed of agricultural land by saying
that no documentary evidence was filed. Ld. AR submitted that the CIT(A)’s
stand that no documentary evidence of sale of land was filed, is contrary to
the record because the assessee actually filed sale-deed and also mentioned
so in the submission filed to CIT(A). Ld. AR pointed out that the assessee
has filed a copy of the same deed in Paper-Book at Page 8-12 and makes a
limited prayer to allow the benefit of sale-proceed of Rs. 6,50,500/-
mentioned therein.
Page 6 of 9
Shri Nirbhay Singh, Ujjain I.T.A.No. 81/Ind/2024 – AY 2009-10
Ld. DR for revenue supports the orders of lower-authorities but
however leaves the issue for the wisdom of bench.
We have considered submissions of both sides and perused the orders
of lower-authorities as also the documents in Paper-Book. After a careful
consideration, we find that as per Para No. 5.4 of CIT(A)’s order, the
assessee has made deposits of Rs. 15,00,000/- in bank a/c on different
dates, namely Rs. 6,50,000 (17.10.2008), Rs. 90,000 (17.10.2008), Rs.
10,000 (20.10.2008) and Rs. 7,50,000 (Rs. 23.03.2009). The CIT(A) has
already accepted availability of funds to the tune of Rs. 7,50,000/- from
agricultural income. The assessee has filed copy of registered sale-deed
dated 21.03.2009 and Page 2 thereof shows the receipt of Rs. 6,50,500/- in
cash prior to sale-deed, the same is scanned and re-produced below for an
immediate reference:
Page 7 of 9
Shri Nirbhay Singh, Ujjain I.T.A.No. 81/Ind/2024 – AY 2009-10
Page 8 of 9
Shri Nirbhay Singh, Ujjain I.T.A.No. 81/Ind/2024 – AY 2009-10
On perusal, we find that the assessee has received sale consideration
of Rs. 6,50,500/- in cash prior to sale-deed i.e. before 21.03.2009 and, thus,
the assessee is having available source for further explaining deposits to the
extent of Rs. 6,50,500/-. Being so, we are inclined to grant a further relief of
Rs. 6,50,500/- to assessee out of the addition of Rs. 7,50,000/- sustained
by CIT(A). The AO is directed to modify assessment-order accordingly. The
assessee succeeds partly in this appeal.
Resultantly, this appeal is allowed partly.
Order pronounced in open court on 11.06.2024.
Sd/- sd/- (VIJAY PAL RAO) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक /Dated : 11.06.2024 CPU/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Assistant Registrar Income Tax Appellate Tribunal Indore Bench, Indore
Page 9 of 9
