Case Law Details
Sh. Satbir Singh Bhullar Vs ITO (ITAT Amritsar)
ITAT Amritsar held that provisions of section 68 of the Income Tax Act is inapplicable as assessee does not maintain any books of accounts. Mere possession of pass book cannot be treated as books of accounts. Accordingly, addition u/s 68 unsustainable.
Facts- The appellant is an agriculturist and has been declaring agriculture income consistently in the returns of income filed on year-to-year basis. The assessee owns more than 20 acres of land individually and jointly with his family at village Bhangala. The appellant had not filed return of income u/s 139(1) for the year under consideration since the total income of the assessee was below the statutory limit as prescribed by the Income Tax Act, 1961. The case of the assessee was re-opened u/s 148 on the basis of the AIR information that the assessee had deposited cash to the tune of Rs. 10,46,000/- in his ICICI Bank Account. The assessment was completed under section 147 r.w.s 144 of the Act, with an addition of Rs. 7,37,948/- by taking into consideration peak amount date 24.12.2017 on account of cash deposited in ICICI bank. Aggrieved assessee filed an appeal before the ld. CIT(A). The ld. CIT(A) uphold the order of assessment. Being dissatisfied the assessee has filed the present appeal.
Conclusion- The assessee properly raised the ground related addition U/s 68 of the Act without maintaining the books of accounts. The assessee confirmed that as an agriculturist is not maintain books of accounts for the impugned year. Mere possession of pass book cannot be treated as books of accounts. We respectfully relied on the order of CIT vs Bhaichand H. Gandhi. The application of Section 68 is uncalled for the assessee. In our considered view the cash deposited by assessee is income from agriculture which is not come under purview of the taxable income. The opening balance of cash was also not considered during determination of peak by the ld. AO. We set aside the order of revenue authorities. So, the entire addition amount to Rs. 737,948/- is quashed.
FULL TEXT OF THE ORDER OF ITAT AMRITSAR
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