Rajpal Singh Vs ITO (ITAT Agra)
Affidavits Left Unverified, Addition Deleted: ITAT Grants Relief to Agriculturist
₹12.66 Lakh Cash Deposit Addition Deleted
The Agra ITAT deleted a ₹12,66,000 addition sustained as unexplained cash deposits, accepting an agriculturist’s explanation based on opening cash savings, agricultural income and loans from seven identified persons.
The Tribunal found the claimed opening cash and agricultural income acceptable in the circumstances of the case. As regards the loans, it noted that the lenders’ affidavits were already on record, but the Assessing Officer had conducted no enquiry during remand proceedings to verify their statements.
The ruling grants relief on merits. The Tribunal did not send the disputed deposits back for another verification exercise.
Reopening Followed Large Bank Deposits
The assessee’s assessment was reopened through a notice under Section 148 dated 31 March 2018, based on information that he had deposited ₹46,51,000 in his bank account.
According to the Assessing Officer, the assessee neither appeared during assessment nor furnished an explanation for the deposits. The officer therefore completed the assessment ex parte, adding the entire cash deposits and ₹15,190 of bank interest, aggregating to ₹46,66,190.
Before the appellate authorities, the assessee described himself as an aged and unlettered agriculturist whose livelihood came from agriculture. He furnished documents explaining the deposits, including a registered agricultural land sale deed, bank passbooks, a date-wise cash flow statement and notarised affidavits from lenders.
