The Income Tax Appellate Tribunal (ITAT) of Delhi Bench ruled that no addition should be made on behalf of the assessee in respect of cash deposited in a joint bank account by the second account holder.
The assessee Devender is a farmer he is not earning any income except income from savings bank account and agricultural income.
The savings account was maintained by the assessee is a joint account wherein Heera Singh S/o Ram Narain is the primary holder and assessee is the other joint holder. During the year under consideration an amount of Rs.1,07,81,000 was deposited in cash in the said joint savings account.
During the course of assessment proceedings, the assessee was required to explain the source of deposit of cash in the said joint saving bank account. The primary holder of the said joint bank account i.e. Shri Heera Singh is one of the co-owners of the rural agricultural land sold during the year. The deposit of cash pertained to the sale transaction of rural agricultural land and was not related to the assessee.
After verifying the submission of the assessee, the AO held that explanations offered by the assessee are not found to be plausible and acceptable. Thus, the AO made an addition.
Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax (Appeal) {CIT(A)}, who uphold the addition. Accordingly, the assessee filed a second appeal before the tribunal.
Before the tribunal, the counsel for the assessee submitted that cash was deposited as well as all the other related documents pertaining to sales transactions of rural agricultural land by the relatives of the assessee.
Further, the assessee is not a party to the sale transaction and at the same time, the primary holder of the joint saving account Heera Singh is one of the owners.
The Departmental representatives supported the decision of lower authorities.
It was observed by the tribunal that no addition was made in the hands of the assessee in respect of cash deposited in the joint savings bank account where assessee is the other holder along with primary holder Shri Heera Singh.
The tribunal after reviewing the facts and submissions of the both parties the Two member bench of Annapurna Gupta (Accountant Member) and Madhumita Roy (Judicial Member) observed that the cash deposited by the second holder of the joint account and the amount was the sale consideration earned from sale of agricultural land.
Rajiv Saxena, counsel appeared for the Assessee. Ramdhan Meena, appeared for the revenue during the proceedings.
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