Kanubhai Maganbhai Patel Vs ITO (ITAT Ahmedabad)
Agricultural Cash Deposits Explained; Reopening Sustained but Addition u/s 69A Deleted – ITAT Ahmedabad
The Ahmedabad SMC Bench of the ITAT allowed the appeal of an agriculturist assessee and deleted the addition of ₹11.01 lakh made under section 69A on account of alleged unexplained cash deposits for AY 2012-13.
The case was reopened based on information of cash deposits of ₹10.66 lakh in a cooperative bank account. As the assessee did not respond to notices during reassessment, the AO treated the entire deposits as unexplained money. The CIT(A) confirmed the addition.
Before the Tribunal, the assessee explained that the deposits represented agricultural income and loan received from Bank of India, supported by bank statements and 7/12 land records evidencing cultivation and loan entries. Though such evidence was not produced earlier, the Tribunal found that the documents clearly correlated the cash receipts with deposits.
The Tribunal held that once the source of deposits is explained with documentary support, invocation of section 69A is unsustainable. Accordingly, the ITAT deleted the entire addition. The alternative plea for peak credit was rendered academic.
The appeal was allowed in full, granting relief to the assessee.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
This is an appeal filed against the order dated 14-06-2024 passed by National Faceless Appeal Centre(NFAC), Delhi for assessment year 2012-13.
