Geethamma Vs ITO (ITAT Bangalore)
Agricultural Income & Kirana Sales – No Straight 69A Addition-Tribunal Orders AO to Verify Sources of Cash Deposits
Assessee, a 60-year-old lady with limited education, did not file return for AY 2017-18. It was found that she deposited ₹5.65 lakh in her Canara Bank account during November 2016. AO issued notice u/s 142(1), but in absence of return, completed best judgment assessment u/s 144 on 15.12.2019. AO treated the deposits as unexplained money u/s 69A & taxed them u/s 115BBE, computing total income at ₹6.50 lakh.
On appeal, CIT(A) dismissed the case for non-prosecution, noting that 4 opportunities were given but not availed. He further upheld the addition on merits.
Before Tribunal, it was explained that non-compliance was not deliberate. The email ID in Form 35 was created by a third party, inaccessible to the Assessee, & her mobile number had changed, due to which notices never reached her. Assessee pointed out that she held 3.25 acres of agricultural land & had deposited sale proceeds of arecanut, coconut & maize. She also ran a Kirana shop with turnover of around ₹9 lakh, income of ₹83,815 of which was already taxed under presumptive scheme. Hence, the deposits were sourced from agriculture & business, not unexplained income.
