Money received from House Rent and Agricultural Land deposited during Demonetization won't attract Addition u/s 69: ITAT [Read Order]

The Income Tax Appellate Tribunal, Hyderabad bench held that money received from the house rent and agricultural land deposited during demonetization won’t attract addition u/s 69 of the Income Tax Act, 1961.

The appellant challenged the addition of Rs.4,04,500/- made by the Assessing Officer which was sustained by the CIT (A) being the addition on account of cash deposit in the Bank A/c during the demonetization period.

The assessee is apartner in M/s. Pindi Pula Reddy Gardens where derives income from a share of profit, house property income and agricultural income. The assessee filed its return of income declaring net taxable income of Rs.4,42,790/-. The Assessing Officer asked the assessee to explain the cash deposit of Rs.2,04,500/- and Rs.2,00,000/- deposited in The Bhavana Rishi Cooperative Urban Bank Ltd vide A/c Nos.1001005005325 and 410901011000986 respectively.The Assessing Officertreated the cash deposited during the demonetization period amounting to Rs.4,04,500/- as unexplained money and added the same to the total income of the assessee u/s 69A r.w.s. 115BBE of the Income Tax Act,1961.

 The assesseecontended that the assessee derives income from house property and had substantial past savings and the assessee also derives income from agriculture. The assessee was having agricultural income and income from house property for the last so many years and the amount of Rs.4,04,500/- is not huge so as to disbelieve the past savings which was deposited in the Bank A/c. The revenue in contra reliedorder of the Assessing Officer and the NFAC. 

The Tribunal Observed that it was clear that the assesseewas deriving rental income from two house properties amounting to Rs.6,72,000 per year and no dispute on the agricultural land held by the assessee. Further observed that the Assessing Officer rejected the agricultural income of Rs.1,40,000/- on the ground that the assessee could not produce any evidence regarding the income earned on the said lands.

Shri R K Panda, accountant member viewed that the assessee was had the source to explain the deposit of Rs.4,04,500/- during the demonetization period from his past savings from house rent and agricultural income and set asidethe order by CIT(A).The appeal filed by the assessee was allowed.

The assessee was represented by Smt. S. Sandhya and the revenue was represented by Sri Waseem Ur Rehman.

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