Kamleshbhai Vinodbhai Patel Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that addition under section 68 towards cash credits not justified since evidences clearly demonstrates that cash deposits and credit entries are through agricultural income. Accordingly, addition deleted and appeal allowed.
Facts- Assessee has not filed his return of income and after receiving information, the Assessing Officer observed that the assessee has made cash deposits totalling to Rs.10,80,000/- in his saving bank account. Since the assessee has not furnished the return of income, the AO issued notice u/s.148 of the Act on 28.03.2016, after recording the reasons for issuance of notice.
After going through the details, AO held that the total deposits ranging from Rs.15,000/- to Rs.7,70,000/- were deposited in the regular interval of one or two months and the same is treated as cash credits within the meaning of section 68 of the Act, and added Rs.17,94,872/- to the total income of the assessee.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee through his advocate has given certificate/affidavit relating to the agriculture income as well as Talati certificate regarding estimated agricultural income from the family lands of the assessee. From the perusal of the records it can be seen that the assessee has given ample evidences relating to agricultural income to the AO and clearly demonstrates that cash deposits and credit entries are through the agriculture income. The AO as well as the Ld.CIT(A) has taken into account bank deposits but has not co-related the same with the actual income derived from the agriculture produce by the assessee through various documents. The AO as well as Ld.CIT(A) has totally ignored this fact and made the addition which is not justifiable. Hence, the appeal of the assessee is allowed.
