The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has deleted the addition for cash deposit on account past savings and agricultural operations.
The assessee Sudha, had deposited a cash amount in her bank account no. 720110110001569 maintained with Bank of India, Duhai. In view of the non-compliance during the assessment proceedings, the Assessing Officer considered the entire cash deposit as unexplained cash credit and added to the total income o f the assessee.
The cash deposits had been explained 1) account of sale proceeds of land 2) deposit for purchase of property by husband 3) the balance amount out of past savings, withdrawals and agricultural activities.
Satyajeet Goel appeared on behalf of the assessee and Ram Dhan Meena appeared on behalf of the revenue.
The Commissioner of Income Tax Appeals (CIT(A)) considered more than half of the amount as explained owing to the cash withdrawals of the assessee from the same bank account and considered balance as explained.
The Bench observed that CIT(A) had not considered the affidavit filed by the assessee with regard to the registered sale deed of an amount which needed to be allowed owing to the sufficiency of the evidence. With regard to the remaining it was submitted that it is out of the past savings and agricultural income.
The two-member Bench of B. R. R. Kumar, (Accountant Member) Yogesh Kumar US, Judicial Member held that a certain amount of past savings could not be discounted. An amount of Rs.27,61,000/- was explained as out of past savings, withdrawals and agricultural activities. Out of this an amount of Rs.2,00,000/- was held to be the past savings and from the agricultural operations of the assessee.
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