Gurcharan Singh Vs ITO (ITAT Delhi)
ITAT Delhi Deletes Addition of ₹5.15 Lakh Cash Deposit – Agricultural Income & Land Sale Consideration Accepted
Delhi ITAT allowed the appeal of Gurcharan Singh by deleting addition of ₹5.15 lakh made u/s 69A on account of cash deposits during demonetisation period.
Assessee, an agriculturist, filed return declaring agricultural income of ₹14,69,626/-. AO noted cash deposits of ₹13 lakh in Oriental Bank of Commerce KCC account, of which ₹5.15 lakh was deposited during demonetisation period. AO doubted genuineness of J-Forms furnished for agricultural sales since Aarhtis did not respond fully to summons, & added ₹5.15 lakh u/s 69A r.w.s. 115BBE treating it as unexplained money.
CIT(A) confirmed addition doubting veracity of Aarhtis’ confirmations despite Assessee producing letters from three Aarhtis showing cash payments for agricultural produce.
Assessee’s explained that out of ₹13 lakh deposit, ₹7.85 lakh represented share of his wife from sale of agricultural land, deposited in bank. Balance deposits were from agricultural income of ₹7.06 lakh, duly supported by J-Forms & confirmations from Aarhtis. Agricultural income declared in return was accepted by AO, hence deposits were fully explained.
Tribunal noted that explanation regarding ₹7.85 lakh land sale consideration received by wife was not found to be false. Agricultural income of ₹7.06 lakh was supported by J-Forms & confirmations mentioning mode of cash payment. AO himself accepted agricultural income declared by Assessee in return. Cash deposits of ₹13 lakh including ₹5.15 lakh during demonetisation were fully covered by explained sources. Reliance was placed on Madras HC ruling in SMILE Microfinance Ltd. vs. ACIT (2024) that higher tax rate u/s 115BBE applies only from AY 2018-19, not earlier.
