Cash Deposits of Agricultural Income not Taxable: ITAT [Read Order]

The Amritsar Bench of the Income Tax Appellate Tribunal ( ITAT ) has recently held that cash deposits of agricultural income are not taxable.

Brief fact of the case is that the assessee’s case was reopened under Section 148 of the Income Tax Act on basis of reasons recorded after getting approval from Joint Commissioner of

Income Tax. The appellant is an agriculturist and has been declaring agriculture income consistently in the returns of income filed on year-to-year basis. The assessee owns more than 20 acres of land individually and jointly with his family at village Bhangala.

The appellant had not filed a return of income under Section 139(1) of the Income Tax Act for the year under consideration since the total income of the assessee was below the statutory limit as prescribed.

Rohit Kapoor, CA, for assessee submitted that the CIT(A) is in order has stated that the appellant has neither filed any evidence in support of the claim made in the written submissions. In this regard it is submitted by the Counsel that the appellant has duly furnished Jamabandi mentioning land holding detail appearing in the name of the appellant along with the family members.

The department representative Ravinder Mittal vehemently argued and relied on the orders of revenue authorities.

It was observed by the Income Tax Appellate Tribunal (ITAT) bench of Judicial Member Anikesh Banerjee and Accountant Member Dr. M L Meena that “The Jamabandi/Girdawari represents the nature of income of assessee as agriculturist. Further, the assessee properly raised the ground related addition u/s 68 of the Act without maintaining the books of accounts.”

It was thus held that the application of Section 68 is uncalled for the assessee and that the cash deposited by assessee is income from agriculture which does not come under purview of the taxable income.

It was thus ruled that, “The opening balance of cash was also not considered during determination of peak by the ld. AO. We set aside the order of revenue authorities. So, the entire addition amount to Rs. 737,948/- is quashed.”

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates