Jitendra Singh Vs ITO (ITAT Delhi)
ITAT Delhi Deletes Cash Deposit Addition – Sale of Rural Agricultural Land Accepted as Source- Onus Shifted Once Evidence Filed – Revenue Failed to Disprove
Assessee, engaged in agriculture, had not filed ROI for AY 2015-16. Based on AIR/AIMS information of cash deposits exceeding ₹10 lakh, reassessment u/s 147 was initiated. AO noted Assessee’s explanation that deposits arose from (i) cash consideration received on sale of agricultural land, & (ii) gift from father (who himself sold agricultural land). AO rejected the explanation citing mismatch between dates of deposits & sale deeds, & added ₹13 lakh u/s 69A. CIT(A) confirmed addition holding explanation unsatisfactory.
Before Tribunal, Assessee produced agreement to sell (25.04.2014), sale deed (25.11.2014), father’s sale deed & bank statements. It was argued that all deposits (₹7 lakh on 22.04.2014, ₹3 lakh on 15.10.2014 & ₹3 lakh on 18.10.2014) fell between agreement & execution of sale deed, a common practice in rural transactions. It was further stressed that land sold was rural agricultural land outside notified limits, exempt from capital gains u/s 2(14) & 10(1). Hence, deposits were explained & not taxable.
Tribunal held that u/s 69A the burden is on Assessee to explain source, which was discharged by producing registered deeds & agreements. Once documentary evidence was furnished, onus shifted to Revenue, which failed to disprove. Tribunal observed that deposits correlated with sale transactions & were customary in rural areas. Since proceeds from sale of rural agricultural land constitute agricultural income, addition was unsustainable. Accordingly, Tribunal deleted the entire addition of ₹13,00,000 & allowed the appeal.
