Agricultural receipts, duly shown in past & accepted by dept, cannot be added as cash credits

The assessee is an individual. The return of income was filed on 29.7.2009 declaring an income of Rs. 36,04,069/- and agricultural income of Rs. 10,25,000/-. The assessment was taken up for scrutiny by issuance of notice u/s 143(2) of the Act. In the course of scrutiny assessment, the assessee was asked to explain the source of cash deposited in his bank account amounting to Rs. 9,95,000. It was submitted by the assessee that the said deposit are out of the agricultural income declared. The assessee was asked to produce the details of the agricultural income. Since, there was no details forthcoming within the stipulated time, the agricultural income declared by the assessee amounting to Rs. 10,25,000/- was treated as cash credit u/s 68 of the Act, 1961.

Admittedly, assessee in the past Assessment Year’s had disclosed substantially agricultural income. The details of which are as under:

 Return filed by the assessee for the above Assessment Year’s has been accepted by the department. For the immediately two preceding assessment year’s, namely, assessment years 2008-09 and 2007-08 substantially agricultural income of Rs. 10,25,000/- and Rs. 9,80,000/- was disclosed by the assessee and same as stated earlier was accepted by the department. In the current A.Y, same agricultural income was disclosed to that of the agricultural income declared in the A.Y 2008-09. Therefore, we are of the view the agricultural income disclosed by the assessee in the current year is reasonable and justified and same cannot be added back to the total income by invoking provisions of sec. 68 of the Act. It is order accordingly.