Narendra Kumar Vs ITO (ITAT Delhi)
Cash Deposits Alone Can’t Justify 69A Addition – ITAT Sends Matter Back for Proper Inquiry- Agriculturist’s Cash Deposits During Demonetization –
Delhi Tribunal examined addition of Rs. 11,87,000/- made by AO u/s 69A treating cash deposits during 9.11.2016 to 31.12.2016 as unexplained.
Assessee, an agriculturist owning 61 bighas of fertile agricultural land, claimed that deposits were from sale of crops & trees & supported his claim with bank statements & Khatauni. AO completed assessment u/s 144, holding that assessee failed to furnish documentary evidence & noticed that cash was deposited only in the demonetization window, with no deposits pre or post that period. CIT(A) upheld the addition on the same reasoning.
Before Tribunal, Assessee argued that AO ignored material such as narrations in bank accounts, Khatauni, nature of occupation, & made a mechanical assessment merely on the basis of insight-portal data without proper enquiry or opportunity.
Tribunal observed that both AO & CIT(A) failed to examine evidences properly & held that verification of agricultural income & cash generation needed fresh factual appreciation. Tribunal therefore set aside the order, restored the matter to AO for de-novo adjudication, & directed AO to examine all evidences, give adequate opportunity, & delete the addition if documents are found in order. Appeal was allowed for statistical purposes.
