THARANIBALAN,VIRUDHUNAGAR vs. ITO, WARD-5, , VIRUDHUNAGAR

Aforesaid appeal by assessee for Assessment Year (AY) 2011-12 arises out of an order passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 31-05-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 144 r.w.s 147 of the Act on 21-12-2018.

The Registry has noted delay of 134 days in appeal. The assessee appeared in person and submitted that he being a lorry driver was not conversant with the faceless proceedings which led to delay in filing of the appeal. Though Ld. Sr. DR opposed the condonation, however, considering the background of the assessee, the delay is condoned and we proceed for adjudication of appeal on merits. 3. Upon perusal of assessment order, it could be seen that the assessee deposited cash of Rs.17 Lacs in its bank accounts but did not file return of income. The Ld. AO issued notice u/s 148 and obtained bank statement. The details of cash deposited by the assessee have been tabulated on Page No.2 of the assessment order. The representative for assessee submitted that cash was deposited out of sale of rural agricultural land located in Chatrapatti which was owned by the assessee and five others of the family. The amount of sale was deposited, later on withdrawn and given to other persons as their shares. The assessee also filed sale documents, bank details and confirmation letters from other members. However, sale document was only for Rs.2.68 Lacs and accordingly, the balance amount of Rs.14.31 Lacs was held to be the unexplained cash deposit and added to the income of the assessee. The Ld. CIT(A) upheld the same since the assessee could not file any further evidences. Aggrieved, the assessee is in further appeal before us. 4. The assessee appeared in person and submitted that he being a lorry driver, has no source of income except income from sale of agricultural land. Shri Arjunraj (Advocate), present in the court, gracefully accepted to be amicus curie in the matter and filed bank statements and details relating to the property. He also submitted that certain sale proceeds was received in cash on sale of agricultural land which was deposited in the bank account of the assessee and later on withdrawn for distribution to the other co-owners.

Upon perusal of bank statements, the submissions of Ld. AR are found to be acceptable. The assessee has deposited certain cash but later on withdrawn and deposited the same in the account of other co- owners. The perusal of bank statement would show that apparently the assessee has no other income. In such a situation, it could reasonably be concluded that the assessee received cash portion on sale of agricultural land which is exempt from tax. Therefore, the bench deems it fit to delete the impugned addition. The Ld. AO is directed to re-compute the income of the assessee.

The appeal stand allowed. Order pronounced on 20th March, 2024. Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा23 / VICE PRESIDENT लेखा सद5 / ACCOUNTANT MEMBER चे7ई Chennai; िदनांक Dated : 20-03-2024 DS आदेशकीIितिलिपअ&ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु?/CIT 4. िवभागीय�ितिनिध/DR 5. गाडDफाईल/GF