Nandaleke Harindra Shetty Vs ITO (ITAT Bangalore)
ITAT Bangalore deleted addition under section 69A r.w.s. 115BBE of the Income Tax Act to the extent of cash deposits made towards agricultural income and cash withdrawn which was redeposited. Accordingly, appeal partly allowed.
Facts- Appellant has preferred the present appeal. The solitary issue that is raised is whether CIT(A) is justified in confirming the addition of Rs.35,13,000/- as unexplained money by invoking the provisions of section 69A of the Act.
Conclusion- Held that the assessee is deriving agricultural income from agricultural land to the extent of 11 acres wherein he is growing coffee which is a commercial crop. For the impugned Assessment Year, assessee in the return of income had declared Rs.3,50,000/- from growing of coffee which has been accepted by the AO. In light of the aforesaid factual matrix, I am of the view that a credit of Rs.3,50,000/- should be given as a source with regard to the cash deposits made (net agricultural income of Rs.3,50,000/-). As regards other cash deposits, I find that there is enough cash withdrawals for redeposits. Therefore, a sum of Rs.12,38,000/- also needs to be given credit as source for the cash deposits made [i.e., Rs.35,30,100 – Rs.19,25,000/- (receipts on account of sale of vehicles) – Rs.3,50,000 (agricultural income)]. Therefore, out of a sum of Rs.35,13,100/- which is added under section 69A r.w.s. 115BBE of the Act, assessee gets a relief of Rs.15,88,000/-. Balance Rs.19,25,000/-pertaining to the receipts on account of sale of vehicles is restored to the files of AO. The AO, in light of the above directions, shall take a decision as regards the aforesaid sum of Rs.19,25,000/- whether it can be given as a credit for the cash deposits made in assessee’s bank account. It is ordered accordingly.
