Vyankatesh Narayan Kulkarni Vs ITO (ITAT Mumbai)
Cash Withdrawn Before Demonetisation Not Unexplained – ITAT Mumbai Deletes 69A Addition, Partly Upholds Agriculture Income Disallowance
Assessee is an individual who filed return of income on 31.03.2018 declaring income of Rs. 6,98,320/- which included agricultural income of Rs. 13,67,404/-. AO during scrutiny proceedings noticed that Assessee had shown salary income as director of Manas Vyapar Pvt. Ltd., consultancy services, income from other sources & agricultural income. AO called for evidence such as land ownership, details of crops & bills or vouchers to substantiate agricultural activities. Assessee submitted that he had been declaring agricultural income for the last 25 years, supported by ITR of Manas Krushi Farm (AOP) where he was a member, but AO rejected the claim on the ground that no documentary evidence was produced. AO therefore treated agricultural income of Rs. 13,67,404/- as income from other sources.
AO further noticed that Assessee had deposited Rs. 23,00,000/- in his Kotak Mahindra Bank a/c during November 2016. When questioned, Assessee explained that this represented redeposit of cash withdrawn earlier in August & September 2016 for the purpose of land purchase which did not materialise. The withdrawals amounted to Rs. 25.50 lakh but since the money was in high denomination currency & demonetisation was announced, Assessee redeposited the same. AO did not accept this explanation for want of evidence & held that retention of such cash for a long time was not explained. AO added Rs. 23,00,000/- u/s 69A as unexplained money taxable u/s 115BBE.
